Discount Gold and Silver Trading

American Survival Newsletter:
Combining the World of Finance, Health & Politics
1/31/14

American Gold

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Edited by Alfred Adask
Friday, January 31st, A.D. 2014
 
MARKETS
 
Between Friday, January 24th, A.D. 2014, and Friday, January 3ist, A.D. 2014, the bid prices for:


Gold fell 1.8  % from $1,269.00  to $1,245.90
Silver fell 3.7 % from $19.91 to $19.17
Platinum  fell 4.1 % from $1,427  to $1,369
Palladium fell 4.1 % from $733 to $700
DJIA fell 1.1 % from 15,879.11  to 15,698.85
NASDAQ fell 0.6 % from 4,128.17 to 4,103.88
NYSE fell 0.7 % from 10,034.40 to 9,967.65
US Dollar Index rose 1.0 % from 80.48  to 81.25
Crude Oil rose 0.5 % from $96.92  to $97.41
 
 

"Only buy something that you'd be perfectly happy to hold
if the market shut down for 10 years."-Warren Buffett

"If the market shut down for 10 years, what investment would you
dare to hold-other than gold?"-Alfred Adask


 

JPMorgan loses 44% of its Comex gold in 5 days

 

By Alfred Adask

 

A couple of charts from Comex suggest that a "bank run" against JPMorgan's gold inventory might be in progress.

 

*  The first chart reflects gold bullion inventories at Comex for Thursday, January 23rd, A.D. 2014:

 

 

 

 

 

At the start of business (Thursday, Jan. 23rd) JPM had 1,459,028 ounces of gold.  During the day, JPM's inventory declined by 321,500 ounces leaving an end-day balance of 1,137,528. 

 

That's a one-day loss of 22% of JPM's gold bullion inventory.  A 22% loss of inventory in one day should be cause for alarm since four more similar losses might exhaust JPM's entire gold inventory.

 

On the same day, Comex started with 7,812,298 total ounces (including JPMs) and finished with 7,463,277 = 349,021 ounce loss for the day = 4.5% loss of initial inventory.  Virtually all of that loss was caused by withdrawals from the JPM inventory.  A 4.5% daily loss should not be cause for panic, but if that rate of decline continued, Comex could be out of gold in about one month.

 

*  The next chart reflects Comex gold bullion inventory activity, three working days later, on Monday, January 27th:

 

 

 

 

 

*  According to the second chart (supra), on Monday, January 27th, JP Morgan lost another 321,500 ounces-a loss of 28% of the gold bullion it held at the beginning of the day.

 

 Including the 321,500 ounces that were "withdrawn" on the previous Thursday, JPM lost forty four percent (44%) of all the physical gold it held in the Comex vaults at the beginning of business on Thursday, January 23rd.  Thus, in three business days, 44% of JPM's gold inventory was "withdrawn".

 

After these two, 321,500 ounce "withdrawals," JPM's remaining balance was 816,028 ounces.  Three more 321,500-ounce withdrawals would be enough to exhaust JPM's current supply of gold bullion.

 

On that same day (Monday, January 27th) Comex started with 7,462,731 ounces of gold bullion, withdrew a net 321,500 ounces, and ended with 7,141,231 ounces.  That's a 4.3% loss for the day (virtually all of which was incurred by JPM).

 

*  If the two 321,500 "withdrawals" are repeated; JPM could run out of Gold in the very near future.  If the daily rate of withdrawals for Comex continued to exceed 4%, the entire Comex gold inventory could be exhausted in less than two months.

 

What happens then?

 

Hard to say, but for one thing, JPM (and perhaps Comex) will no longer be able to make good on any of their contracts to deliver gold. 

 

Those owning a paper gold contract from JPM will lose their assets-at least until the resulting litigation are concluded in the following two to five years-and perhaps forever.  All of which suggests that those who are holding paper debt instruments issued by JPM which promise to pay in gold may want to demand immediate physical delivery of "your" gold before everyone else does the same. 

 

*  The reason I mention "everyone else" who may seek to take "your" gold is that Comex publishes another graph, which reports on "Owners Per Ounce".  (See the bottom of the following image.)

 

"Owners Per Ounce" indicates the ratio of how many speculators in the Comex gold market have a claims on gold in relation to each ounce of registered gold actually held in the Comex vaults. 

 

 

 

 

 

A year ago, the "Owners Per Ounce" was about 20.

 

Today, there appear to be about 80 "Owners Per Ounce".

 

Thus, the Comex inventory appears sufficient to only deliver about 1/80th of the physical gold promised in current gold contracts.

 

Ratios of 20 to 80 between "Owners" and "Ounces" aren't necessarily extraordinary.  They're similar to what we might expect to see in fractional reserve banking where banks are required by law to keep between 3% and 10% of total deposits in the bank in the form of cash.

 

For example, suppose a bank had $1 billion in deposits. Depending on the applicable national law, that bank might be required to hold between $30 and $100 million in its vaults to satisfy bank depositors who might want to withdraw their funds on any given day.

 

Banks know that, statistically, only a relatively small number of bank depositors will normally try to withdraw their deposits on any given day.  Therefore, a bank holding $1 billion in deposits doesn't need to keep all of those $1 billion in the vault every day 24/7.  Instead, if the bank keeps, say, $100 million in the vault, that should be enough to see it through each day's business.  The other $900 million in deposits can therefore be loaned out to build homes and businesses, and provide consumer loans.

 

In the previous example, the ratio of the $1 billion in deposits to the $100 million actually held in daily "reserves" 10 to 1.  Thus, there'd be effectively 10 bank depositors having a claim on each of the dollars held in "reserve" in the bank's vault.

 

The Comex "Owners to Ounces" graph indicates that the gold bullion market also runs like a "fractional reserve" bank.  A lot of money is invested/deposited into Comex, but only a relatively small quantity of physical gold is held in reserve to satisfy investor demands.  There's relatively little physical gold held in the Comex vaults because Comex knows that, historically, only a relatively few gold market investors actually take physical delivery of gold.  Virtually everyone who has speculated in the gold market has preferred to take their profits in the form of checks for fiat dollars rather than physical gold.

 

At least, that was true up until about a year ago.

 

*  According the "Owners Per Ounces" graph, a year ago, the ratio of "Owners" to "Ounces" in the in the gold bullion commodity market was about 20 to 1.  In essence, there were 20 speculators who had claims on each ounce of gold held in the Comex vaults. 

 

Conversely, you might say that the Comex gold's fractional-reserve ratio was 20 to 1.  That ratio compared favorably with the fractional reserve ratio of 10 to 1 in bank deposits to bank funds kept on hand and in the banks' vault.

 

These "fractional reserve" ratios are reasonable because they're based on historic norms.  The banks know that only a relatively few people will withdraw their deposits on any given day.  Comex likewise knows that, historically, only a relatively few gold speculator will withdraw physical gold on any given day.

 

But.  If depositors lose confidence in their bank, the economy, or the Comex gold markets, they might all rush to the bank  (or Comex) in a relatively short period of time to demand that the bank release all of their deposits (or Comex release all of its gold). 

 

That would be a "bank run". 

 

Bank runs are dangerous because, if:

1) A bank has only $100 million in the vault; but,

2) Depositors demand to withdraw over $100 million; and,

3) The bank can't satisfy all of the depositors' withdrawal demands; then

4) The bank may be declared insolvent and permanently closed or sold off to a larger bank.

 

In theory, we can expect a similar chain of events and a similar conclusion if a single Comex broker like JPM-or Comex, itself-was beset by an unusually large number of speculators who demanded to take delivery of physical gold rather than accept paper checks.

 

*  In the case of a bank run where there's a 10 to 1 ratio of deposits to dollar reserves held in the bank's vault, so long as no more than 10% of depositors (on average) withdraw their funds on any given day, the bank can remain solvent and in business.

 

In the case of the Comex gold market, last year there was a 20 to 1 ratio of "Owners" to "Ounces" of registered gold.  At that time, Comex was a little more vulnerable to a "bank run" than a conventional bank that had a 10 to 1 reserve ratio.  For banks, if over 10% of depositors (on average) withdrew their deposits on any one day, the bank could fail.  For Comex, if over 5% of speculator (on average) demanded to take delivery of physical gold, the Comex market might fail.

 

That was last year.

 

Today, however, the "Owners Per Ounces" ratio is no longer 20 to 1-it's 80 to 1.  That implies that, on average, if just 1 current speculator out of 80 in the gold market demands to take physical delivery of his gold, the Comex gold market could collapse. 

 

Unlike the hypothetical bank that might fail if over 10% of its depositor suddenly withdrew their funds, or the Comex gold market of last year that could fail if 5% of its speculators demanded to take physical delivery of gold, today's Comex gold market inventory might be exhausted and Comex deemed insolvent if just 1.25% of its speculators demanded to take physical delivery of the gold bullion they'd "invested" in.

 

*  This current Comex gold "Owners Per Ounces" ratio is dangerous but not necessarily fantastic.  In any commodity, tens or scores of people "invest" in the pork bellies for every available pork belly.  Likewise, tens or scores of people invest in Frozen Orange Juice Concentrate for every unit of frozen orange juice. 

 

Virtually everyone who invests in pork bellies or Frozen Concentrated Orange Juice (FCOJ) has no intention of taking delivery 10,000 pork bellies or a truckload of FCOJ.  They're just speculating in order to get a check.  They invest in pork bellies to acquire a check-not a pork belly.  They invest in FCOJ to get a check, not a truckload of orange juice.

 

Likewise, historically, the vast majority of those who invested in gold as a commodity never intended to take delivery of the physical gold.  They were simply "betting" that the price of gold would go up or down.  If they bet correctly, they only wanted a check payable in dollars to celebrate their good fortune.

 

But, with the persistent rise in the price of gold (and correlative fall in the purchasing power of the fiat dollar) from A.D. 2000 through A.D. 2011, more and more people who bet in the Comex gold market began to realize that they were better off taking delivery of the physical gold than they were taking "delivery" of a paper check for fiat dollars.

 

Results?

 

1. More and more people began to take delivery of physical gold.

2.  The gold vaults at Comex (and perhaps the US Treasury and Federal Reserve) began to empty.

3.  People in positions of power realized that if Comex, the US Treasury and the Federal Reserve continued to hemorrhage physical gold, they'd soon run out, and be recognized as unable to make good on any of their contracts to deliver physical gold. 

4.  At that point, the gold-price-manipulation scheme would collapse.

5.  The price of gold would rise significantly and perhaps skyrocket; and,

6.  The perceived value of the fiat dollar would collapse.

 

*  Implication?  It seems likely that The Powers That Be recognized that investors in the gold commodity markets were demanding delivery of physical gold because they believed the price of gold would continue rising

 

If so, it seems reasonable to presume that, in order to protect the fiat dollar, the Powers That Be decided to crush the price of gold and thereby destroy the incentive to take physical delivery of gold rather than take a check for fiat dollars. 

In support of this speculation, we know that:

  1. Comex began hemorrhaging gold in the first week of February, A.D. 2013 when it held almost 2.9 million ounces of registered gold.
  2. In the first week of February, A.D. 2013, the price of gold was about $1,675.
  3. By December of A.D. 2013, the price of gold had fallen to $1,195-a staggering loss of $480/ounce or 29% loss in just 11 months
  4. During that same period (February through December A.D. 2013) the Comex vaults' supply of registered gold fell from 2.9 million to 375,140 ounces.  While gold's price fell 29%, the Comex inventory of registered gold fell 2.86 million ounces.  That's a loss of 87% of registered gold inventory in less than 11 months    That's a slow-moving bank run on the Comex gold market.  It's not as dramatic as a one day, or one-week bank run on a traditional bank, but It's still a bank run.
  5. Between January 23rd and January 27th, JPM suffered a 44% loss of physical gold.  Now, that's a "bank run" in the gold market that's almost as sudden and dramatic as the "runs" seen on conventional banks.  

 If it were true that the Powers That Be intentionally pushed gold's price down by 29% in A.D. 2013 in order to stop gold commodity investors from taking physical delivery of gold from Comex vaults, their plan backfired.  Because gold was as such low levels, the global demand for physical gold increased and the supply in Comex vaults fell by 87% in just 11 months.

 

It would be an astonishing irony if the Powers' attempt to crush the price of gold resulted in such an enormous increase in demand for gold that the Powers themselves were forced to lose much of their gold in order to protect the fiat dollar.

 

But regardless of whose gold is being sold and lost, the numbers on the Comex graphs suggest that the end is near.  JPM (which lost 44% of its gold inventory in less than a week) could lose the remainder in another week, and will probably lose the remainder in the next 90 days.  Comex (which has lost 87% of its registered gold inventory in 11 months) might lose the remaining 13% in the next month, and will probably lose that 13% in the next 90 days. 

 

If JPM and/or Comex exhaust their gold inventories, the gold price manipulation scheme should end and the price of gold should increase dramatically.

 

Insofar as the Comex gold inventory has plummeted with artificially low prices, it follows that the only way JPM and Comex may be able to avoid losing their entire gold inventory is to allow the price of gold to once again rise.  Thus, if JPM and/or Comex want to preserve whatever gold they still have, they'll have to allow the price of gold to rise.

 

Either way, it appears likely that the price of gold should enjoy a significant increase over the next 90 days.   More, once that rise begins, it's not likely to be stopped again by a new round of gold price manipulation.

 

I know this doesn't have anything to do with business, however, what kind of people are we just to sit back and assign "oh, that is crazy talk" to a story.  If we cared this much about our country instead of just sitting back perhaps we wouldn't be in as much trouble.

 

We must credit Laurie Roth for trying to do something.

 

Church of Wells - Using Hypnosis, threats, Scripture as weapons - Remaking Minds, Hearts and Souls to their Evil Agenda

BY ADMIN, ON JANUARY 29TH, 2014

 

The more I dig the more I hear real horror stories regarding Church of Wells that have nothing to do with Christianity at all.  Those who have left the Church and others who have visited there with hopes of talking with a family member there report all kinds of alarming statements and actions by Church elders and Deacons.

Threatening, Demonic and Hypnotic behavior observed by witnesses

More than one member growling like a dog

One man told me (He asked to have his identity withheld) when he and his wife visited Wells to try and talk some reason into their friend to not submit to an arranged marriage, they were kicked out of the wedding.  Later that night they report being surrounded by between 8 and10 Church of Wells guys, had scripture quoted at them and were glared at.  One of the members growled at them like a dog.  The next day, he reported that Cory McLaughlin, road his bike to their gas station and walked inside where he and his wife were standing.  He reported that Cory also growled like a dog at them.  When confronted with his growling, Cory denied growling and said he was tired from riding his bike.  Really?  My source said both episodes were clear...growling like a dog.

Elders surrounded Andy and Patty Grove and prayed death upon them from God

Is this how Christian leadership acts?

Andy and Patty Grove, the loving and concerned parents of Catherine Grove have been called evil by church members to their face and accused, in front of their daughter Catherine that they they were trying to kill Catherine.  They listened in horror and watched as Catherine meekly nodded in agreement. Patty reports at one point they were surrounded by Church elders who put their hands to the sky and started praying a prayer that sounded more like a curse or threat...ending with Ryan Ringnald and Jacob Gardner calling on God to strike Andy and Patty dead right in front of them.  Apparently, their satanic prayers hiding behind Jesus don't work too well.  Andy and Patty are still breathing air and most alive.

Signs that Hypnotic and Mind control is going on

Patty also reported to me that when visiting with one church member in their store and asking normal questions about his family, his eyes suddenly started twitching, glazed over and he started talking in a robotic, un attached way.  Patty said when talking with Catherine and trying to give her her Grandpa's letter that her eyes also started twitching, staring off and speaking in a robotic, UN attached and programmed way.

After piecing together many accounts of witnesses, threats, growling at visitors, praying death down from the sky, using Holy Scripture as weapons, locked prayer closets and then sudden eye twitching and robotic talking, it is quite clear. Church of Wells is using classic mind control techniques to seek, destroy, and then build up their controllable spiritual and worker surfs from scratch. 

These transformed Church surfs no longer have any hope except Church of Wells leadership and their disfigured version of Jesus. There is no joy because salvation is not secure and can be taken away because of their sin. There is no future, no freedom and no family members since they are idols. To top it off and solidify the members growing confusion and submission, there is little sleep since that is also an idol.  The cherry on top is that all their possessions and money belong to church leaders who redistribute to each of them as they see fit.

Witnesses have said that now Church members are being constantly flooded with 'martyrdom' sermons.  They are told that they will be martyred for Christ and that when the evil pressure and heat builds big enough they will go into one of their homes together and go up in a holy fire.'  Now, they are training the members to expect death and be ready to follow orders.  They are the 'godly persecuted ones,'  Is the Jim Jones saga closer than we realize? 

Church members reading this...NOW is the time to WAKE UP. Whether you understand everything that is happening to you or not - GET OUT. Even if you don't trust yourself anymore, trust me then - GET OUT. It is time to leave and get back on the REAL track with the Lord Jesus, your life and family.  Go somewhere in Wells and call the number below.  Don't announce it just do it. Someone will get back to you and get you out.  Or, email us and someone will get back to you with a safe exit plan.  Do it!

Call: 206 - 984 - 6859

Email:churchofwellsexitplan@hushmail.com

Mind control and programming expert Dr. Corydon Hammond gave a famous and historic speech "Hypnosis in MPD:Ritual Abuse."   Read it and learn about how your mind can be so easily manipulated and turned into something you don't recognize at all.

He talks of the use of pain, fear and the manipulation of when 'comfort' is allowed.  He talks of Nazi mind control experiments with children. They put one 8-year-old child's in a mousetrap with comfort only being allowed after the crying would stop.  Other experiments were designed to separate feelings and rewards, literally creating mental illness.  In some cases a person would have electrodes placed on them and manipulated to experience real anger against someone in a group, then asked the question "are you angry at someone in the group?" When they would say "yes" they would be shocked.  More manipulative questions would be asked and more shocks would be given until they would give the desired response completely disconnected from reality.

Look at the mind control techniques Church of Wells leadership is using on members

Here is a list of Church of Wells lies and distortions:

1. Salvation is not a free gift of God through Jesus Christ, where Jesus did all the work on the cross.  WRONG!  The Holy Bible says we are to simply repent of our sins and except the gift, already paid for by Jesus.  Salvation is NOT works at all.  Church of Wells, however, uses it as a weapon where it can never quite be attained, certainly without the careful instructions of cult leaders.

2. Locked prayer closets are used as classic mind control manipulation.  These are the places that the cult literally controls the growth of mental illness to completely control members - 'God attacks you'   'You get rid of yourself - your worldly, desires, questions and unbelief.'  When the elders finally let you out of the 'prayer closet' you are comforted and naturally look to the elder as the Christ given authority that rescued you and gave you relief from your own sinful condition.  Remember, in human Trafficking, the pimp or handler, beats their victim down, creates submissive servants by giving a mixture of threats, compliments, rewards and punishment...all mixed up with reality.  They will beat and rape you, then comfort you and buy you dinner. WRONG AGAIN!

3. Every source of love and strength in your life are now idols to be shunned.  WRONG! These include: Families, money, careers, hopes, dreams, your ability and right to understand the Holy Bible and faith on your own.

4. They steal a foundational right and dream all people have - to fall in love and get married.  Church of Wells now chooses your spouse and it is to someone else in the cult. WRONG!

5.  They control all money and assets of members, then point and click them as worker bees in businesses they control and own.  WRONG!  All money is redistributed as the elders see fit.

Church of Wells is a growing and terminal cancer of lies and warped theology form the pit of hell. It has nothing at all to do with real Christianity as Jesus Christ and the Holy Bible defines.   It is simply designed to seduce naļve Christians or 'searchers' who want to get close to God and do the right thing yet don't have a deep or rooted foundation in their faith.  Once they have pulled the 'searcher' into their ranks, weapons of war and transformation start in:  Completely separate the new recruit from all who can help them and really love them:  Use Scripture to control and terrorize - A little hope, A lot of fear:  Hold Salvation out as the almost unachievable goal that only submitting to Church of Wells can secure.

Get out now!     Call: 206 - 984 - 6859

 

This guy is absolutely correct.  For 19 years we have said the same thing...difference is he is a former Harvard economics professor.

He talks of the Federal reserve rigging markets since 1987 BUT the main problem was the creation of the Federal 74 years earlier because anytime you control the money supply you control everything.

 

 

From Terry Burnham, former Harvard economics professor, author of "Mean Genes" and "Mean Markets and Lizard Brains," provocative poster on this page and long-time critic of the Federal Reserve, argues that the Fed's efforts to strengthen America's banks have perversely weakened them. First posted in PBS.

Is your money safe at the bank? An economist says 'no' and withdraws his

Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000.

Why am I getting in line to take my money out of Bank of America? Because of Ben Bernanke and Janet Yellen, who officially begins her term as chairwoman on Feb. 1.

Before I explain, let me disclose that I have been a stopped clock of criticism of the Federal Reserve for half a decade. That's because I believe that when the Fed intervenes in markets, it has two effects - both negative. First, it decreases overall wealth by distorting markets and causing bad investment decisions. Second, the members of the Fed become reverse Robin Hoods as they take from the poor (and unsophisticated) investors and give to the rich (and politically connected). These effects have been noticed; a Gallup poll taken in the last few days reports that only the richest Americans support the Fed. (See the table.)

 

Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too? Because they pay me zero interest. Thus, even an infinitesimal chance Bank of America will not repay me in full, whenever I ask, switches the cost-benefit conclusion from stay to flee.

Let me explain: Currently, I receive zero dollars in interest on my $1,000,000. The reason I had the money in Bank of America was to keep it safe. However, the potential cost to keeping my money in Bank of America is that the bank may be unwilling or unable to return my money.

They will not be able to return my money if:

  • Many other depositors like you get in line before me. Banks today promise everyone that they can have their money back instantaneously, but the bank does not actually have enough money to pay everyone at once because they have lent most of it out to other people - 90 percent or more. Thus, banks are always at risk for runs where the depositors at the front of the line get their money back, but the depositors at the back of the line do not. Consider this image from a fully insured U.S. bank, IndyMac in California, just five years ago.
  • Some of the investments of Bank of America go bust. Because Bank of America has loaned out the vast majority of depositors' money, if even a small percentage of its loans go bust, the firm is at risk for bankruptcy. Leverage, combined with some bad investments, caused the failure of Lehman Brothers in 2008 and would have caused the failure of Bank of America, AIG, Goldman Sachs, Morgan Stanley, Merrill Lynch, Bear Stearns, and many more institutions in 2008 had the government not bailed them out.
 

In recent days, the chances for trouble at Bank of America have become more salient because of woes in the emerging markets, particularly Argentina, Turkey, Russia and China. The emerging market fears caused the Dow Jones Industrial Average to lose more than 500 points over the last week.

Returning to my money now entrusted to Bank of America, market turmoil reminded me that this particular trustee is simply not safe. Or not safe enough, given the fact that safety is the reason I put the money there at all. The market turmoil could threaten "BofA" with bankruptcy today as it did in 2008, and as banks have experienced again and again over time.

If the chance that Bank of America will not return my money is, say, a mere 1 percent, then the expected cost to me is 1 percent of my million, or $10,000. That far exceeds the interest I receive, which, I hardly need remind depositors out there, is a cool $0. Even a 0.1 percent chance of loss has an expected cost to me of $1,000. Bank of America pays me the zero interest rate because the Federal Reserve has set interest rates to zero. Thus my incentive to leave at the first whiff of instability.

Surely, you say, the federal government is going to keep its promises, at least on insured deposits. Yes, the Federal Government (via the FDIC) insures deposits in most institutions up to $250,000. But there is a problem with this insurance. The FDIC currently has far less money in its fund than it has insured deposits: as of Sept. 1, about $41 billion in reserve against $6 trillion in insured deposits. (There are over $9 trillion on deposit at U.S. banks, by the way, so more than $3 trillion in deposits is completely uninsured.)

It's true, of course, that when the FDIC fund risks running dry, as it did in 2009, it can go back to other parts of the federal government for help. I expect those other parts will make the utmost efforts to oblige. But consider the possibility that they may be in crisis at the very same time, for the very same reasons, or that it might take some time to get approval. Remember that Congress voted against the TARP bailout in 2008 before it relented and finally voted for the bailout.

Thus, even insured depositors risk loss and/or delay in recovering their funds. In most time periods, these risks are balanced against the reward of getting interest. Not so long ago, Bank of America would have paid me $1,000 a week in interest on my million dollars. If I were getting $1,000 a week, I might bear the risks of delay and default. However, today I am receiving $0.

So my cash is leaving Bank of America.

But if Bank of America is not safe, you must be wondering, where can you and I put our money? No path is without risk, but here are a few options.

1.Keep some cash at home, though admittedly this runs the risk of loss or setting yourself up as a target for criminals.

2.Put some cash in a safety box. There is an urban myth that this is illegal; my understanding is that cash in a safety box is legal. However, I can imagine scenarios where capital controls are placed on safety deposit box withdrawals. And suppose the bank is shut down and you can't get to the box?

3.Pay your debts. You don't need to be Suze Orman to know that you need liquidity, so do not use all your cash to pay debts. However, you can use some surplus, should you have any.

4.Prepay your taxes and some other obligations. Subject to the same caveat about liquidity, pay ahead. Make sure you only pay safe entities. Your local government is not going away, even in a depression, so, for example, you can prepay property taxes. (I would check with a tax accountant on the implications, however.)

5.Find a safer bank. Some local, smaller banks are much safer than the "too-big-to-fail banks." After its mistake of letting Lehman fail, the government has learned that it must try to save giant institutions. However, the government may not be able to save all failing institutions immediately and simultaneously in a crisis. Thus, depositors in big banks face delays and defaults in the event of a true crisis. (It is important to find the right small bank; I believe all big banks are fragile, while some small banks are robust.)

Someone should start a bank (or maybe someone has) that charges (rather than pays) interest and does not make loans. Such a bank would be a good example of how Fed actions create unintended outcomes that defeat their goals. The Fed wants to stimulate lending, but an anti-lending bank could be quite successful. I would be a customer.

(Interestingly, there was a famous anti-lending bank and it was also a "BofA" - the Bank of Amsterdam, founded in 1609. The Dutch BofA charged customers for safe-keeping, did not make loans and did not allow depositors to get their money out immediately. Adam Smith discusses this BofA favorably in his "Wealth of Nations," published in 1776. Unfortunately - and unbeknownst to Smith - the Bank of Amsterdam had starting secretly making risky loans to ventures in the East Indies and other areas, just like any other bank. When these risky ventures failed, so did the BofA.)

My point is that the Federal Reserve's actions have myriad, unanticipated, negative consequences. Over the last week, we saw the impact on the emerging markets. The Fed had created $3 trillion of new money in the last five-plus years - three times more than in its entire prior history. A big chunk of that $3 trillion found its way, via private investors and institutions, into risky, emerging markets.

Now that the Fed is reducing ("tapering") its new money creation (now down to $65 billion a month, or $780 billion a year, as of Wednesday's announcement), investments are flowing out of risky areas. Some of these countries are facing absolute crises, with Argentina's currency plummeting by more than 20 percent in under one month. That means investments in Argentina are worth 20 percent less in dollar terms than they were a month ago, even if they held their price in Pesos.

The Fed did not plan to impoverish investors by inducing them to buy overpriced Argentinian investments, of course, but that is one of the costly consequences of its actions. If you lost money in emerging markets over the last week, at one level, it is your responsibility. However, it is not crazy for you to blame the Fed for creating volatile prices that made investing more difficult.

Similarly, if you bought gold at the peak of almost $2,000 per ounce, you have lost one-third of your money; you share the blame for your golden losses with Alan Greenspan, Ben Bernanke and Janet Yellen. They removed the opportunities for safe investments and forced those with liquid assets to scramble for what safety they thought they could find. Furthermore, the uncertainty caused by the Fed has caused many assets to swing wildly in value, creating winners and losers.

The Fed played a role in the recent emerging markets turmoil. Next week, they will cause another crisis somewhere else. Eventually, the absurd effort to create wealth through monetary policy will unravel in the U.S. as it has every other time it has been tried from Weimar Germany to Robert Mugabe's Zimbabwe.

Even after the Fed created the housing problems, we would have been better of with a small 2009 depression rather than the larger depression that lies ahead. See my Making Sen$e posts "The Stockholm Syndrome and Printing Money" and "Ben Bernanke as Easter Bunny: Why the Fed Can't Prevent the Coming Crash" for the details of my argument.

Ever since Alan Greenspan intervened to save the stock market on Oct. 20, 1987, the Fed has sought to cushion every financial blow by adding liquidity. The trouble with trying to make the world safe for stupidity is that it creates fragility.

Bank of America and other big banks are fragile - and vulnerable to bank runs - because the Fed has set interest rates to zero. If a run gathers momentum, the government will take steps to stem it. But I am convinced they have limited ammunition and unlimited problems.

What is the solution? For you, save yourself and your family. For the system, revamp the Federal Reserve. The simplest first step would be to end the dual mandate of price stability and full employment. Price stability is enough. I favor rules over intervention. We don't need a maestro conducting monetary policy; we need a system that promotes stability and allows people (not printing presses) to make us richer

Be sure to listen to Financial Survival radio program live at dgscoins.com and Short-wave radio 7.490 AND 9.880Mhz M-F 4:00PM ET. We broadcast in cities of Spokane KTAC 93.0 5-6pm Eastern, Metairie WVOG 600AM 3-4PM Eastern and Dallas KXBD 1480AM 4-5PM Eastern.

Discount Gold & Silver Trading Co. provides all forms of precious metals including gold, silver platinum and palladium whether you are buying or selling. Our inventory includes but not limited to the American Gold, Silver, Platinum Eagle and numismatic products including rare, investment and circulated coins. Silver dollars, silver bars, rounds are on hand for the silver investor. Foreign gold is also available. Call for information regarding your precious metal gold and silver IRA. Call 1-800-375-4188 or visit the Web site at dgscoins.com or email us at:discountgoldandsilver@yahoo.com


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HEALTH

Sleep vs Disease

by Herbalist Wendy Wilson

 

 

The topic of sleep affecting our health is nothing new but there have been new studies magnifying just how important a good night's sleep can be for your health. Lately, people of all ages are sleep deprived which has undermined their health on the cellular level. Long-term loss of regular sleep causes accumulative damage to the body. In the US we have 2 million children and 70 million adults not getting adequate sleep each night and this can make them vulnerable to disease. What does not getting enough sleep mean to our health and our economy? Let's find out.

 

THE COST OF NO SLEEP

The lack of sleep in America is estimated to cost the US economy $15.9 billion in health care costs. Why is that? Not getting enough sleep is not something we should dismiss as a minor inconvenience. On the cellular level the sleep helps our bodies to regenerate, helps our body to heal and keeps our immune system healthy. When we don't get to sleep naturally this has become big business to the pharmaceutical companies who net $2 billion annually selling sleep medications, which account for one-third of all the prescribed drugs sold in America. Medical doctors like to Dr. Guy Meadows of the Sleep School, advise us against using sleep medications because long-term use of sleep aids will corrupt the body's ability to naturally go to sleep. Rebound effect is a guaranteed problem when using sleeping medications. The result is having insomnia worse than when he started taking the drug. Sleep aids do not promote the natural sleep cycle and REM sleep that the body requires. Sadly, sleeping pill users have a 50% higher mortality rate than nonusers. 

 

EXTREME SLEEP DEPERVATION

Dr. Charles Czeisler, a Harvard Medical School sleep expert, testified in the Dr. Conrad Murray trial involving Michael Jackson's death. According to trial records, Michael Jackson had gone as long as sixty (60) days without sleep. Theprevious world's longest record for going without sleep was 276 hours (11.5 days) recorded in 1964. The propofol drug administered to Jackson put him into a coma-like state and disrupted the normal sleep pattern. Although patients given propofol can wake feeling refreshed as if they had genuine sleep but on a cellular level the body knows that they really haven't. According to Dr. Czeisler, Jackson's chronic lack of authentic sleep with a REM sleep pattern affected his memory and caused paranoia and audio hallucinations. It is Dr. Czeisler's professional opinion that Jackson, regardless of the propofol overdose, was living on borrowed time and would have died within the 80th dose of propofol but he died on his 63rd dose.

 

MALE Vs FEMALE

Is there a big disparity between the sexes when it comes to getting a good night's sleep? Women are twice as likely as men to have difficulty falling and staying asleep. For women pregnancy, menopause or other hormonal changes can worsen sleep patterns causing sleep disorders.

 

THE ELDERLY

The elderly are prone to sleep problems. Over half of those over the age of 65 experience disturbed sleep. Those over 65 (about 13% of the US population) consume over 30% of all the prescription drugs with 40% of those prescriptions being sleeping pills.

 

CHARACTERISTICS OF INSOMNIA

Insomnia is described in many ways. In general it is a sleep problem that causes illness.  You have difficulty falling asleep, you sleep walk, wake and can't return to sleep, have un-refreshing sleep, have a racing mind, have daytime fatigue, drowsiness or tiredness, your irritable and have difficulty concentrating. Einstein knew the importance of adequate sleep and he admitted needing 10 hours of sleep each night to function normally and 12 hours of sleep to do physics.

 

Adequate sleep benefits:

  •          assists growth
  •          regenerates brain neurons (brain cells)
  •          releases hormones
  •          builds muscle
  •          burns calories
  •          improves memory
  •          balances emotions
  •          improves school grades

 

Deprived REM sleep causes:

  •          crankiness
  •          sluggishness
  •          hampered creativity
  •          memory impairment
  •          drowsiness
  •          4 times higher risk of accidents
  •          higher risk of illness and disease
  •          rapid aging
  •          cancer accelerator
  •          alters immune system
  •          produces anxiety & paranoia
  •          depression
  •          mental confusion & disrupts learning
  •          loss of balance & appetite
  •          reflexes ten times slower
  •          emotional responses ten times stronger

 

COMMON CAUSES

There are many causes of sleep disorders such as; prescribed medications, steroids, stress, anxiety, normal aging, caffeine addiction or use before bed, sugar use before bed, jet lag, shift work, alcohol after dinner, anger, grief, smoking, substance abuse, parasites, environmental temperature changes and disease. The number one cause for not sleeping well is usually sickness and the lack of sleep will make disease worse. Individuals with serious illnesses such as cancer, angina, migraine headaches, asthma, arthritis, pulmonary disease, restless leg syndrome and depression are more apt to develop a sleep disorder.

 

NEW RESEARCH

A study published in the journal Cancer Research studied GM mice and sleep. They gave two groups of mice cancer tumor cells. In one group they would disrupt the sleep of the mice every two minutes; making them wake up and go back to sleep. The other group they did not disturb their sleep. In four weeks the group of mice with the sleep deprivation had their tumors to grow twice the size as the tumors in the mice with normal sleep. Dr. David Gozal of the University of Chicago Comer Children's Hospital and who conducted this study concluded that poor sleep significantly impacts the immune system, and how it deals with diseases like cancer. Just remember that with regard to a hospital environment which are loud and noisy and don't promote good sleep.

 

SOME FOODS & HABITS

A study done by the Sleep Research and Treatment Center at Pennsylvania State University found that smoking increases the production of the nervous system chemical catecholamine and keeps you awake. Also, alcohol, like caffeine, is a nervous system stimulant and contributes to sleep disorders.

 

FOLKLORE

American settlers used herbs to promote a good night's sleep such as; red bergamot and pennyroyal tea. In Germany during the eighteenth-century lemon balm, anis and honey tea was used before bed. In old England mulled apple cider and cloves with a cinnamon stick provided a hot brew before bed. During WWII valerian root was used by the British physicians to help with post-traumatic stress disorder (or shell shock). Other herbs used in folklore remedies were chamomile, basil, lavender and cedar wood.

 

FORGET COUNTING SHEEP

Before you run off to the pharmacy for the latest in sleep aids, try to adjust your diet to exclude foods that irritate your nervous system and digestive tract. Keeping a food journal for two weeks can help you narrow down these foods. If you still need a little help try Black Walnut Tincture with natural iodine to feed the thyroid gland and to help expel any parasites. Valerian Root Tincturewill take the edge off the central nervous system without being a sedative. Lobelia herb (Relaxation Formula) helps to remove tension from the muscles and helps to promote the natural sleep cycle. You can use both valerian root and lobelia herb together if necessary. If you need more essential B vitamins for the nerves try the Emotional Stress Formula. The Body Foundation Food Mixis an excellent multivitamin, protein and amino acid whole food source. For these formulas or for organ cleansing and immune boosting herbal products call Apothecary Herbs 866-229-3663, International 704-885-0277 or onlinehttp://www.thepowerherbs.com, where your healthcare options just became endless. February is the BIG Cold & Flu month. Power up and save 20% on the larger size formulas while supplies last!

 

Sources:

 

http://www.cnn.com/2013/06/21/showbiz/jackson-death-trial/

http://www.myfoxdc.com/story/24563545/poor-sleep-quality-may-accelerate-cancer-growth-study-finds#axzz2rjJaorQ6

 

"NEW" from Apothecary Herbs POWER GREENS FOR PETS - Keeps you away from the vet.  Natural herbs for dogs and cats. Because we want organic pets Power Greens is a blend of organic plants and natural herbs containing vitamins, minerals and 22 amino acids found naturally in these whole-food plants. Easy to digest with healthy digestion enzymes. You will notice the vibrant color of the greens and other ingredients in Power Greens for Pets because it is made with certified organic herbs grown to Tilth Standards (the highest organic standards in the industry). Compared to Dinovite®, Power Greens for Pets is made with superior grade ingredients and will produce much faster and better results in the health of your pet. No need for large scoops of our Power Greens for Pets to get results. Depending on the size of your pet 1/2 teaspoon to one tablespoon is all you'll need. Your pet will be healthier and you'll save money. For more info call 866-229-3663  

 

MORE HERB SECRETS IN THE POWER HERBS e-BOOKBy popular demand The Power Herbs e-book is available with symptom/herb reference guide, information on organ cleansing and how to make your own herbal tinctures plus a whole lot more. You must have email to order and receive the e-book a PDF version of The Power Herb book for just $14.99. At this time, we do not offer this title in hard copy.

 

COMING UP ON HERB TALK LIVE

Herbalist Wendy Wilson on Herb Talk Live

Saturday morning show:

7 am EST on GCN

2/8/14 Dr. Rebecca Carley with more on deadly vaccines.

 

Weekday show:

7 pm EST on AVR

2/18/14 Dr. Rebecca Carely with more on deadly vaccines.

Shortwave show 8 pm EST WWCR 4840

 

Go to Herb Talk Live & Radio Archive area for network link access and past shows to download and share. For Android users you can download a FREE app for Herb Talk Live on GCN. See the download link under radio archives at top of page. 
The information contained herein is not designed to diagnosis, treat, prevent or cure disease. Seek medical advice from a lincensed medical physician (if you dare) before using any product or therapy. 

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