Money is Scurrying Away From the Dollar

It seems like every month brings up a new opportunity to point out how dramatically the world of gold is changing, and this month continues the trend.

It was only recently that we were fretting over proposed IMF gold sales, concerned over the metal’s inability to break out of a trading range with a low end of around $870, and wondering how the world could have so quickly forgotten about quantitative easing and the dollar destruction it would engender. Fast-forward a few weeks and we see a gold price about $90 higher and the dollar in a free-fall.

I’ve often employed a seesaw analogy to illustrate the relationship between gold and the U.S. dollar. As one rises, the other falls, and charts of gold and the dollar index show that this inverse relationship has reasserted itself over the past few weeks. The only break in the dollar’s fall has come amidst North Korea’s muscle flexing in the form of a nuclear test and assorted missile launches.

It’s ironic that “safe haven” investing now means a flight to the dollar, and the return of normalcy means flight from the dollar. We can take comfort in the fact that things eventually do return to normal… and today that means a far-sighted recognition of the tidal wave of dollars headed our way.

But it has also come to mean something else — something that is even more disturbing than an inflation-spawned dollar destruction. It has now become clear that the new regime in Washington is intent on inserting itself into every aspect of the economy and private business, without regard to the consequences, the rule of law, or even common sense.

It was bad enough when Congress tried to run roughshod over the law in their attempts to rescind the bonuses of AIG execs. But then the Obama administration decided the big banks that took TARP money—some which never wanted or needed it in the first place—wouldn’t be allowed to give it back.

Then it sacked the head of a private company (GM). Then it ignored the legal rights of secured creditors to hand over the lion’s share of Chrysler to a key political supporter, the United Auto Workers union. Then it set about to determine what is and isn’t reasonable compensation for executives in the financial services industry…and no one in the White House thought the idea was the least bit controversial!

It hasn’t ended there: Now we will be told what types of cars we can drive. Now we will be told, by statisticians ensconced in some shrouded Washington bureaucracy, what kind of health care we can have. And we’ll be forced to pay for all of it, in fortune and lives.

Now, obviously, many Americans agree with these political moves. And you might be among them. But there is no argument that the U.S. government is becoming increasingly invasive in relation to the economy, the markets and private business. And this can’t be good for America’s economic future.

What does all this have to do with the dollar and gold? Quite simply, we have to live with the consequences of the leftward tilt in American politics. But foreign capital doesn’t…and it won’t.

Simply put, capital flows to where it feels secure. Where free markets and the rule of law are respected. That’s why you don’t see investors flocking with fat wallets to Zimbabwe. They know that their capital would be subject not to law, but to whim. In short, their funds would be quickly and efficiently confiscated.

America is not Zimbabwe, of course. But we have seen some frightening similarities in recent weeks, as pure political power has repeatedly steamrolled the rule of law.

True, as an investment venue, America doesn’t present nearly the same level of risk as Zimbabwe. But it doesn’t have to be that risky to send capital flying away; it only has to present more risk than the alternatives.

And America currently represents greater political risk than, say, Canada, New Zealand, Australia and Switzerland. Even France can now be regarded as friendlier to capital and wealth formation than the United States.

In a world replete with better options, it doesn’t take much to send money scurrying away from America and the dollar. And that’s precisely what’s happening now.

As my friend and world-renowned trader Dennis Gartman ( recently noted, “We do indeed fear that the U.S. dollar is in jeopardy of falling materially in the coming days, weeks and months in light of the actions taken, and likely to be taken in the future, by the Obama Administration…. “In other words, the tide has shifted. In other words, the tectonic plates are moving. In other words we’ve no choice but to err upon the side of dollar bearishness henceforth. In other words, the game has changed, with new rules to guide us from this point forward. In other words, money will flow from the US to other harbors, and we shall say yet again that the most logical harbors are those that look the most like the U.S. but which are not suffering from the same left-wing, ill advised policies of the present Administration.”

Which brings me back to the same point I’ve been making for months: We will have to endure a sometimes-painful transition from fear of financial catastrophe to fear of inflation. But once through it, we will see gold embark on the most powerful leg of its bull market.

From all appearances, that transition is progressing nicely.

Doctors say iron deficiency ‘dangerous’ during pregnancy

Doctors say iron deficiency 'dangerous' during pregnancy Iron plays a key role in brain development, and its deficiency has been linked to hearing complications in prematurely born babies, a new study has found.

Scientist from the University of Rochester Medical Center (URMC) analyzed 80 infants over a period of18 months, testing their cord blood for iron levels and measuring the maturity of the brain’s auditory nervous system after birth.

They found the brains of infants with low iron levels in their cord blood had abnormal maturation of the auditory system.

"Sound isn’t transmitted as well through the immature auditory pathway in the brains of premature babies who are deficient in iron as compared to premature babies who have enough iron," says Dr. Sanjiv Amin, associate professor of Pediatrics at the URMC.

He adds researchers suspect that if the deficiency has a serious impact on the auditory neural system during developmental phase, other parts of the brain are also likely to be affected.

"We are [particularly] concerned [about] its potential implications for language development," Amin specifies.

Background information of the study suggests as many as 20 to 30 percent of pregnant women with lower socio-economic status may be iron deficient, a condition which may lead to anemia.


Plant-based diet improves weight and cholesterol level, study says

Plant-based diet improves weight and cholesterol level, study says According to new research, a low-carb diet high in plant-based proteins may help lower heart disease risk factors in overweight people.

Canadian scientists from St. Michael’s Hospital and the University of Toronto divided a total of 50 overweight men and women with high LDL (or "bad") cholesterol levels into two groups of 25 participants. One group was assigned to eat a low-carbohydrate diet high in vegetable proteins from gluten, soy, nuts, fruits, vegetables, cereals and vegetable oils for four weeks.

Meanwhile, the other group consumed a control diet that was high-carbohydrate, lacto-ovo vegetarian and based on low-fat dairy and whole grain products.

At the end of the study period, the weight loss of about 8.8 pounds was similar in both groups, but reductions in LDL cholesterol levels and improvements in the ratios between total cholesterol and HDL were greater for the low-carbohydrate diet participants.

High LDL cholesterol levels have been linked to a range of cardiovascular disorders, including atherosclerosis, heart attack and stroke.

The study results were reported in the June 8 issue of Archives of Internal Medicine.

Tips on avoiding pool accidents

Tips on avoiding pool accidents A faulty pool drain cover can lead to serious injuries, and the beginning of the summer season is a good time to review basic safety measures that pool-owners should keep in mind to avoid a disaster.

Since December 2008, the Virginia Graeme Baker Pool and Spa Safety Act requires that anti-entrapment devices be installed on drains that resist UV degradation and prevent body parts from becoming trapped due to suction.

The act was named for a girl who died in 2002 when the suction from a spa drain entrapped her under the water.

NSF International, a public health and safety organization, has therefore offered suggestions to help create a safer swimming environment. They include making sure properly-sized drain covers are installed and teaching children not to play with or remove a drain cover.

Moreover, it is a good idea to drain any standing water from the surface of the pool cover, as small children can drown in even the smallest amount of water. Before allowing anyone to swim, the cover should be completely removed.

Finally, a key to avoiding accidents is responsible adult supervision at the pool side at all times.

For additional safety, some people have chosen to surround their pool or spa area by a fence with a self-latching mechanism to prevent unauthorized entry on to their property.

NSF quotes figures from the Consumer Product Safety Commission which indicate some 300 children under the age of 5 drown each year and 5,000 to 6,000 are severely injured as a result of faulty draining systems.


Census Workers Marking GPS Coordinates of U.S. Homes

The United States Constitution calls for an enumeration (census) to be taken every 10 years to determine the number of representatives each state will send to Congress. The next one is set to begin on April 1, 2010.

But census workers are already on the streets of America, and they’re doing more than just seeking the number of people in each household. They’re tasked with marking the Global Positioning System (GPS) coordinates of every house in America.

According to the U.S. Census Bureau website, “This GPS technology allows us to reduce the amount of time spent by census workers in locating addresses while increasing productivity. Most importantly, by adding a GPS coordinate to each housing unit, the Census Bureau is able to ensure that residents are counted in the right location. This is important as the data are used to apportion congressional representation and used to draw redistricting lines.”

But the idea of mapping GPS coordinates for every front door in America reeks of Big Brother intrusion. And it’s just a continuation of Big Brother Government’s efforts to compile more and more data on each individual.

Already the census goes far beyond its Constitutional charter of counting the population. Census forms ask intimate questions that are not the government’s business.

Information such as income, description of your property, whether you have running water, a shower or bathtub, type of heating system, the type of fees you have to pay in your community, rental or mortgage payment amounts, education level, whether you have insurance, whether you have a disability, how you get to work and much more is requested on some forms. All of it beyond the scope of what our Founders had in mind when they set up the enumeration.

All that information is great for pencil-pushing, snooping bureaucrats and newspaper editors writing statistical stories. But it’s much too much information for the government to have on its citizens.

Now comes the GPS coordinates as a further intrusion. As blogger Douglas V. Gibbs wrote on his American Daily Review, “GPS coordinates of your front door will make it easier for the government to monitor you. The U.S. Census Bureau is simply an excuse—a harmless-looking means of obtaining the front door coordinates. The creation of GPS coordinates for front doors has nothing to do with the Census, in all honesty, no matter how much the United States Government tries to convince you that it does.

“Why would the U.S. Government desire the exact location of your front door to be entered into their GPS data base when they already have the location of your home in the system?” Gibbs asked.

How’s this for a scenario? With the military stretched thin by fighting a two-front war, what’s going to happen in the case of a national emergency?

Gibbs posits that perhaps United Nations troops, many non-English speaking and certainly unfamiliar with U.S. communities, would use them to locate the neighborhoods they are required to police or the houses of people they are sent to take into custody.

Certainly foreign troops would be more willing than U.S. soldiers to quell an uprising of U.S. citizens fed up with an increasingly socialist/fascist government.

And who can forget the scenes of smart bombs and tomahawk missiles, guided by GPS coordinates, going through the windows and doors of buildings during the invasion of Iraq?

Who thinks this is what the Founding Fathers had in mind when they wrote the census into the Constitution?

Diet may minimize prostate cancer risk, review concludes

Diet may minimize prostate cancer risk, review concludes According to a new article, dietary adjustments may help prevent or treat prostate cancer.

The article, published in the Journal of Human Nutrition and Dietetics, is based on a new review study conduced in Australia which confirms a diet low in fat and red meat and high in fruits and vegetables has beneficial effects.

In particular, consumption of tomatoes, cauliflower, broccoli, green tea as well as Vitamin E and selenium supplementation seemed to correlate with a lower risk of cancer.

By contrast, high intake of processed or charcoaled meats, dairy products and fats appeared to be related to a higher risk.

To arrive at the conclusion, the researchers reviewed dietary recommendations in the prevention and management of the prostate cancer, and found that those who successfully managed or avoided the disease also had lower dairy consumption and calcium intake.

Stressing the results are not conclusive, the authors nonetheless believe a "general dietary modification has a beneficial effect on the prevention of prostate cancer."

"In patients with prostate cancer, dietary therapy allows them to be an active participant in their treatment," they emphasize.

Study sheds light on retirement, health insurance trends

Study sheds light on retirement, health insurance trendsDeft Research, a market research firm, has released a study which analyzes the expectations of those aged 63-64 for their retirement and health insurance.

The age group was chosen based on the fact that at 65 Americans become eligible for Medicare benefits and must make a decision about Medicare related health insurance.

The survey has found the percentage of respondents who will continue working after age 65 has increased in the past year from 43 percent to 55 percent.

Moreover, the largest share of the group who will work after 65 will use commercial employer-based benefits as their primary source of health insurance, a result the company says shows the consumer market that needs a Medicare plan at 65 is diminishing.

According to Rich Hamer, a principal at Deft Research, the study suggests plans and consumers may benefit from offerings targeted at diverse age segments with products best suited for them.

Several recent surveys have shown Americans contemplate delaying retirement as the financial meltdown has wiped out savings.

A poll released by the American Institute of Certified Public Accountants has revealed that almost 35 percent of their clients who are approaching retirement age are postponing it now, a 3 percent increase from last year.


Obama outlines plans for regulatory reform

Obama outlines plans for regulatory reform Following an announcement from earlier this week, President Obama has laid out his plans for sweeping new regulations of the financial system.

The reforms are designed to prevent a repeat of the financial meltdown from last year that sent the economy into the deepest recession in decades.

In addition to requiring financial institutions to hold greater reserves as backup for losses and setting new conflict of interest rules for credit rating agencies, the government will also propose new laws to expand the oversight powers of the Federal Reserve.

The White House has also committed to seeing through the establishment of a Consumer Financial Protection Agency.

"It’s time we put the needs of American families above the interests of Wall Street," Obama said.

However, House Republican Leader John Boehner has expressed concerns a consumer board will allow government to interfere with the free market, according to Reuters.

Many lawmakers are also reportedly skeptical about extending the control of the Fed.

Democratic Senator Chris Dodd of Connecticut, chairman of the Senate Banking Committee, said the recent near-financial collapse has left the government and the people with little confidence in the central bank.

Private insurer ‘rescinded’ sick patients

Private insurer 'rescinded' sick patients Amid a fierce debate on the best ways to pursue a healthcare reform, it has emerged that the nation’s largest health insurer rewarded its employees for cancelling coverage of sick patients.

Evidence released by the House subcommittee on Oversight and Investigations suggests the insurance company WellPoint rewarded its employees for retroactively canceling coverage of sick patients, a practice known as "rescission," according to Consume Watchdog.

As a result, the advocacy group has called on Congress to ban health insurance employees from receiving bonuses for canceling, delaying or denying necessary medical care to patients.

"The committee’s stunning discovery demonstrates both the need for a real public alternative to for-profit insurers and new legal accountability of insurance companies that are willing to lie, cheat and kill to boost profits," says Jerry Flanagan, health care policy director for Consumer Watchdog.

One of the biggest bones of contention in the current discussions is the issue of a government-run health insurance option, which supporters say would drive down costs by forcing private insurers to compete with the government.

However, opponents counter that a public plan would drive private operators out of business, increase costs and reduce quality of health care.

Consumer Watchdog says documents show WellPoint, Golden Rule (owned by United Health) and Assurant rescinded more than 20,000 policies over five years and refused to pay for more than $300 million in medical expenses.

President to authorize benefits for same-sex couples

President to authorize benefits for same-sex couplesWhite House officials have announced President Obama will sign a memorandum on Wednesday which will extend health and other benefits to gay partners of federal employees.

Media reports have suggested the timing of the announcement may be related to the barrage of criticism from gay rights groups the administration has been facing in recent days.

Earlier this week, the Justice Department filed legal papers in support of the Defense of Marriage Act (DOMA) which bans the federal government from recognizing same-sex unions as marriages. Shortly before that, the government had expressed support for the Supreme Court recent decision to uphold the "don’t ask, don’t tell" policy.

While calling today’s decision "terrific," Richard Socarides, an adviser to the Clinton administration on gay issues, said Obama had promised much but delivered little thus far, quoted by the New York Times.

"So more important now is what he says about the future for gay people during his presidency," he added.

Meanwhile, Family Research Council (FRC) President Tony Perkins has said the president’s move violates the DOMA.

"[The executive order] uses taxpayer money to placate an angry portion of his base at the expense of the rule of law," Perkins commented.

He added the FRC lawyers intend to look closely at the new law to determine what further course of action to take.

MS patients have recourse to alternative therapies, source says

MS patients have recourse to alternative therapies, source says People who suffer from multiple sclerosis (MS), a debilitating neurological condition, may benefit by supplementing their mainstream therapy with alternative treatments.

Complementary approaches such as moderate and targeted physical exercise, in particular tai chi and yoga, can increase balance and flexibility as well as energize the body, suggests, a medical news website.

For those who do not suffer from osteoporosis, which sometimes results from mainstream medical treatments for MS, gentle massage has also been shown to bring some relief of their symptoms and to lower the level of stress.

Others have responded well to acupuncture which may improve muscle spasms and alleviate bladder control problems, the source says.

Doctors have also been stressing the importance of proper diet and supplementation for those trying to manage their MS. In particular, there is evidence that oral supplements containing linoleic acid, also known as evening primrose oil and found in sunflower seeds and safflower oil, may slightly improve MS symptoms.

Before embarking on any course of alternative therapy treatment for MS, it is important to consult with a physician.

The Germ Theory of Disease Underwrites Establishment Medicine

When we say we “caught a cold” or we “caught the flu”, we are promoting establishment medicine and huge profits for them. All the vaccination and immunization industry is based on a germ theory of disease which simply says that viruses and bacteria are transferred from one person to another by “germs.” Almost nobody questions this dogma. Yet if we think about it for a minute, it’s downright foolish. Such foolishness flows to unthinking masses who live by medical establishment propaganda.

If John Doe or Mary Sue in a community “catches” a virus, then the germ theory says that everyone who comes in contact with either of these two will “catch” the virus. We absolutely know that this is not true. We also know that in the flu epidemic of 1918, or any other disease epidemic, that not all who came in contact with the virus got sick. There is no applied external immunity. Immunity is internal. This in no way implies that we should be careless with personal hygiene and sanitation. It is the human organism that provides its own immunity; otherwise, the human race would have been extinct for thousands of years.

Many people walked and worked in the midst of the bubonic plague and did not die or even get sick. Ninety percent of the people are reported to have died. All may be true, but what about the 10 percent survivors? Nothing else needs to be known to refute the germ theory of disease.

Vaccines are for profit upon the bodies of infants, children and adults. Legally speaking, under the pretense of immunization health, almost all ages are under assault. “The lowest forms of filth known to man are injected into the unknowing population.” (From the book Bacteria, Inc.)

We are told and intimidated by medical propaganda over and over that we must be protected internally from diseases that originate in the external environment.

Against the assault of these “microscopic organism” bacteria, we are told that we must protect ourselves with immunizing shots for smallpox, diphtheria, tetanus, typhoid, colds, influenza, pneumonia, scarlet fever, whooping cough and many other invading armies of disease microbes.

All authority from the federal government down to the clinics and school personnel embrace this myth as gospel. And the federal government, in symbiotic fraternity with the drug cartel, even pays for many shots. The people, sick and poor, don’t have a chance against this assault. Why do they not guarantee us to be disease free? Where is the "Science of Preventive Medicine"?

Countless new serums and vaccines are developed with the promise of perfect protection from the ravages of external and communicable disease.

Scientists know that bacteria cannot ferment or decompose living tissue. Instead, bacteria feed on broken-down body cells. Until it can be shown that bacteria or viruses have an affinity for healthy cells, the belief that they cause disease will remain unsupportable. Instead, bacteria are scavengers that keep the body clean.

“Immunization to date has been based on the Ehrlich Theory that the inoculation of disease products in subpathogenic doses creates antibodies, or defending entities, against any subsequent mass invasion. Not only is there no evidence of these so-called antibodies being formed, but there is ground for believing that the injected germ proteins hybridize with the body proteins to form new tribes, half animal and half human, whose characteristics and effects cannot be predicted… Even non-toxic bacterial substances sometimes hybridize with serum albumins to form specific poisons which continue to multiply, breed and cross-breed ad infinitum, doing untold harm as its reproductivity may continue while life lasts.” (From Bacteria, Inc. pp 19)

The marked increase of old diseases in children and adults and the development of new ones parallel the expansion of “preventive medicine” and warrant suspicion and examination. All originate because commercialism is the God of modern medicine.

Folic acid supplementation reduces heart risk for newborns

Folic acid supplementation reduces heart risk for newborns Folic acid has been known to reduce the risk of neurological defects in fetuses, but new research suggests it also may boost a baby’s heart health.

According to Canadian scientists, women who use folic acid supplementation during pregnancy can reduce the risk of having a baby with congenital heart defects.

Researchers from McGill University have analyzed provincial databases and found that the rate of congenital heart defects fell from 1.64 per 1,000 births between 1990 and 1999 to 1.47 per 1,000 births between 1999 and 2005, a decrease of 6.2 percent each year.

The decrease coincided with the introduction of a mandatory fortification of all grain products sold in Canada with folic acid in 1998.

Nonetheless, says Raluca Ionescu-Ittu, a PhD candidate on the research team, "[th]e level of fortification was established to avoid negative side effects in the general population."

"This level is not quite sufficient for women planning a pregnancy, who should start taking folic acid supplements at least three months before becoming pregnant," she adds.

Folic acid is a vitamin that can be found in a variety of fruits and green vegetables.


Plane crash survival tips

Plane crash survival tips In the wake of recent airplane accidents, many people will ask themselves if it is possible to survive similar crashes. Fortunately, experts are saying passengers who keep in mind several basic survival strategies have a high likelihood of survival.

Mac McLean, the FAA’s investigator for cabin safety, says it is a good idea to count the number of rows between your seat and the nearest exit when you board the plane, quoted by ABC News.

Moreover, it is always helpful, even for seasoned travelers, to pay attention to safety demonstrations and read the safety instructions brochure.

After the plane has crash landed, it is important to leave the scene as fast as possible because it can quickly become toxic or explosive.

If there is enough time, and no immediate help from the outside, it may also be a good idea to take basic medicines and a blanket or other cover when leaving a crashed airplane to protect oneself from elements while awaiting emergency responders.

Meanwhile, for those who survive a plane going down at sea, the Discovery Channel advises to get clear and upwind of the aircraft but remain in the vicinity until it sinks. It is also important to get clear of fuel-covered water in case the fuel ignites and try to find other survivors.

Despite the large number of fatalities from the recent crash of an Air France jet off the coast of Brazil, government statistics suggest 19 out of 20 people make it out of airliner crashes safely, according to ABC News. ADNFCR-1961-ID-19222149-ADNFCR

Administration set to unveil new regulatory policy

Administration set to unveil new regulatory policy President Obama will deliver a speech on Wednesday in which he is expected to announce a plan for a sweeping overhaul of the financial system regulation.

According to a preview offered yesterday by Treasury Secretary Timothy Geithner and Lawrence Summers, director of the National Economic Council, the plan will call for greater oversight powers for the Federal Reserve and stricter restrictions on complex financial products.

Specifically, the reform envisions the creation of a council of regulators responsible for coordination across the financial system.

It will also require institutions which sell asset-backed securities to retain a 5 percent stake in the loans in an effort to discourage risky lending practices.

"Considerations of stability, safety and systemic risk have to loom larger in the planning, thinking, and strategizing of every financial institution going forward than they have in the past," Summers said in a speech on Friday, quoted by the Wall Street Journal.

Critics of the proposal have said the Fed is already overextended and the plans lack provisions for regulating the insurance industry, according to the Associated Press.

Others have pointed out it fails to create a single regulator, leaving the job to a patchwork of local and state-level agencies which often encroach upon one another’s jurisdiction.

Mild weather encourages outdoor yoga practice

Mild weather encourages outdoor yoga practice With the arrival of summer, Yoga practitioners around the country are stepping outside to let the sun and the wind boost the benefits of the Indian healing technique.

In response to the growing demand, yoga studios are offering outdoor sessions to those who seek to relive the stresses of daily life, according to Desert News, a Utah news source.

Sarah Longacre, who runs a yoga and wellness studio in Minneapolis, says life simply slows down and there is nothing to get in the way of a meditative exercise practice outdoors.

"You can get connected to a deeper place in yourself, you can [literally] feel … the earth with your hands, feet and body," she adds, quoted by the news source.

There is a close relationship between the natural environment and the practice of yoga, the article stresses, given that its common poses are named for animals, trees, mountains and crescent moons.

As such, yoga can be practiced anywhere one can find a bit of grass or sand, including one’s own backyard, beach or along a hiking trail.

Besides yoga, other mind-body techniques that can be practice outside include breathing exercises, physical exercise, tai chi and meditation.

Gold IRA investment receives major endorsement

Gold IRA investment receives major endorsement American Bullion, Washington Times radio and The Rescue Task Force veterans charity have teamed up to tout the benefits of U.S. Gold IRA retirement accounts.

Under the terms of the alliance, American Bullion will donate to charities dedicated to severely wounded war veterans on each client’s behalf.

U.S. Gold IRA accounts act to provide asset security by investing in physical gold in the form of gold coins having a purity of 24 karat or 22 karat U.S. Gold Eagles. Many financial experts believe precious metals offer the best asset value protection in these turbulent economic times.

"Gold just seems to make sense, it’s a store of value," said chief executive officer of Northwestern Mutual Life Insurance Edward Zore in an interview with Bloomberg. The company has recently invested $400 million dollars in gold for the first time in its history.

"[T]he price could double or even rise fivefold if the economy continues to weaken," Zore believes.

The self-directed Gold IRA has the added advantage of investing in domestic gold at a time of economic crisis.

Obama’s move on marriage enrages rights groups

Obama's move on marriage enrages rights groupsThe Justice Department has filed legal papers to dismiss a case in which a same-sex couple is seeking a determination on whether their union is entitled to be acknowledged by states that do not recognize same-sex marriage.

The suit also demands a ruling on whether they are eligible for federal benefits, according to ABC News.

The administration’s move has drawn criticism from gay rights groups which have pointed to the fact that as a presidential candidate Obama vowed to repeal the Defense of Marriage Act (DOMA) which prevents the federal government from treating a same-sex union as marriage.

"The malicious and outrageous arguments and language used in the Justice Department’s brief [are] only serving to inflame and malign the humanity of same-sex couples and our families," says Rea Carey of the National Gay and Lesbian Task Force Action Fund, quoted by the Los Angeles Times.

Defenders of traditional marriage remain cautious, however.

Randy Thomas, executive vice president of Exodus International, warns on his blog against being "deceived" into thinking Obama will not redefine marriage and family.

"I think we must remember that while the Obama Justice Department is seemingly repeating social conservative arguments … other Obama administration departments are inculcating gay ideology into their corporate environments," he writes, quoted by Christian Post.

The Justice Department has said President Obama wants to see an overturn of DOMA but will defend the existing statute until Congress passes legislation repealing the law.