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Edited by Alfred Adask
Friday, February 7th, A.D. 2014

Between Friday, January 31st, A.D. 2014 and Friday, February 7th, A.D. 2014, the bid prices for:


Gold rose 1.7 % from $1,245.90 to $1,267.10

Silver rose 4.3 % from $19.17 to $20.00

Platinum rose 0.9 % from $1,369 to $1,381

Palladium rose 1.1 % from $700 to $708

DJIA rose 0.6 % from 15,698.85 to 15,794.08

NASDAQ rose 2.9 % from 4,103.88 to 4,125.86

NYSE rose 0.8 % from 9,967.65 to 10,055.40

US Dollar Index fell 0.7 % from 81.25 to 80.67

Crude Oil rose 2.8 % from $97.41 to $100.14


"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


What are "bubbles"? 


by Alfred Adask


In economics, "bubbles" are typically entire markets wherein virtually every product in that market is significantly and artificially over-priced. 


For example, if the housing market goes into a "bubble," most homes in that market will be selling for prices that seem unreasonably high.   If tech stocks go into a "bubble," virtually all of the individual stocks in that particular market will be selling for unreasonably high prices. 

Bubbles can occur in a particular nation's bond, stock, housing, and commodity markets.  All bubbles have a single common denominator:  they're significantly over-priced.


But when we say "over-priced," we necessarily mean "over-priced" in relation to something else.  What's that "something else"?  It's the free market.  Bubbles are over-priced in relation to the prices that would normally exist in the free market.  


For example, suppose the real estate market is in a "bubble".  Prices for homes could be ridiculously high.  A house that should sell for $250,000 on the free market, is nevertheless selling for $1 million.  That's a bubble.  Motivated by greed, people nevertheless buy that home for $1 million believing that the bubble will continue to expand and  the price of the $1 million home will soon go even higher to, $1.5 or even $2 million.


The important point to grasp is that when stock, bond, commodity and home markets become "bubbles" they're over-priced in relation to a true, free market.


Given that "bubbles" describe over-priced markets, we can ask, How did the "bubble" come to exist outside of the free market?  


Any free market is capable of over-reacting so as to produce excessively high or low prices.  But generally speaking, when a particular free market produces irrationally high or low prices, the more astute members of that market will sense the irrational price and reverse course so as to produce a good profit.  Free markets tend to correct their excesses in a more-or-less timely manner.


But a true "bubble" will persist long after the free market might've cause a price correction.




Because a true "bubble" isn't caused by mere forces of supply and demand in a free market.  A "bubble" is caused by influences from outside of the free market.  These outside forces cause a market to be artificially stimulated, manipulated and controlled in way that defy and overcome the true forces supply or demand.


What's the source of outside forces?


It might be a very wealthy corporation.  It might be conspiracy of individuals bent on cornering a market.  But in this day and age, when you see a "bubble," you see the result of legislation, policies and/or regulations that've been imposed by government and/or the central bank.

Bubbles exist in the un-free, manipulated markets.  Manipulated by whom?  Government and central banks like the Federal Reserve.


How long will "bubbles" last and continue to grow?  Until the government and/or Federal Reserve change policy or run out of sufficient fiat currency to continue to inflate the "bubble".

(What's the Federal Reserve's favorite song?  "I'm Forever Blowing Bubbles.") 


What's the meaning of Economic "Confidence"?

by Alfred Adask


In the January newsletter from Elliott Management, Paul Singer wrote in part.


 "If investors lose confidence in paper money, as evidenced by either a hard sell-off in one of the major currencies or a sharp fall in bond prices, the Fed and other major central bankers will be in a pickle.  If they stop QE and/or raise short-term rates to deal with the loss of confidence, it could throw global markets into a tailspin and the worldwide economy into a severe new recession.  However, if they try to deal with the loss of confidence by stepping up QE or keeping interest rates at zero, there could be an explosion in commodity and other asset prices and a sharp acceleration in inflation."


"Loss of confidence."  "Loss of confidence."  "Loss of confidence." 


A "loss of confidence" seems to be an important subject, but what's it mean? 


Primarily, in economics, a "loss of confidence" means a loss of the willingness to borrow

It may also mean an unwillingness to lend. 


But mostly, the loss of confidence in the economy means a loss of confidence in one's ability to repay debts


Thus, a "loss of confidence" means a loss of the willingness to borrow currency and go into debt.  Given that we use a debt-based monetary system in a fractional reserve banking system, a refusal or unwillingness to go into debt is arguably anti-social and, if sufficiently widespread, poses a threat  to the entire financial system. 


I.e., if I borrow $250,000 for a home, I actually create a new $250,000 in credit with my signature and promise to repay the alleged debt.  By borrowing I create capital needed to fund our economy.


If I borrow $250,000, the banks can then use my $250,000 promise-to-repay/note as collateral  (an "asset").   Under fractional reserve banking, the bank can use my note to justify lending up to ten times the note's face value.   My $250,000 note can justify the bank's lending up to $2.5 million to other consumers/debtors. 


Thus, my mere signature on a $250,000 note could be sufficient to create $2.75 million in new credit to stimulate the economy.  However, if I lose confidence in the economy  and don't believe that I'll be able to repay that $250,000 loan, I will refuse to borrow the $250,000, and the economy can suffer a $2.75 million dollar loss of potential "stimulation". 


You can see how important a public "loss of confidence" can be.  If enough people lose confidence and also refuse to borrow (and thereby go deeper into debt), the financial system could collapse.  If enough new funds aren't created by going further into debt, the pre-existing debts might not be paid and the Ponzi scheme might collapse. 


In the event of a serious loss of public confidence (and a resulting refusal by the people to create more credit by borrowing and going deeper into debt), we could expect the government and/or the Federal Reserve to use their powers to create a comparable sum of fiat currency to inject into the economy.  The purpose would be to compensate for and supplant the loss of "stimulation" caused by people who lost confidence in the economy, and therefore refused to borrow more currency.


Under such circumstances, the Federal Reserve and/or national government might describe their creation of fiat currency as "Quantitative Easing"-which is exactly what we've in the aftermath of the onset of the Great Recession in A.D. 2007-2008.  The public lost confidence in the economy and stopped borrowing.  The government/Federal Reserve tried to replace that lost borrowing by injecting QE into the economy and lowering interest rates to make borrowing irresistible. 


But even with lots of additional cash to be loaned and low interest rates, the public still could not be persuaded to borrow, go deeper into debt, and thereby stimulate the economy.  QE and low interest rates have done enough to prevent further economic decline, but they have not yet caused enough "stimulation" to precipitate a recovery. 


Point:  A "Loss of confidence" means a public refusal to borrow and go deeper into debt.   A debt-based monetary system can't survive a widespread refusal to borrow.



Borrowing Authority vs Borrowing Capacity


by Alfred Adask


Reuters recently reported in "Treasury's Lew warns that U.S. default could happen quickly," that, 

"The Obama administration warned on Monday it could start defaulting [OMG! OMG!] on the government's obligations "very soon" after hitting a limit on the national debt later this month.


"Treasury Secretary Jack Lew said the federal government should hit the [dreaded] debt ceiling by the end of February unless Washington raises the nation's limit on public borrowing."


"The federal government would then burn through its remaining cash more quickly that it would at other times of the year because the Treasury will be issuing tax refund checks, Lew said."


 Were you counting on a tax refund in February to fund your March vacation?  Well, maybe you'd better reconsider you plans because your IRS refund check may be "in the mail" a bit longer than you'd hoped.

"Without borrowing authority, at some point very soon, it would not be possible to meet all of the obligations of the federal government," Lew said in prepared remarks at a Bipartisan Policy Center event. 


OK, we're about to witness another sock-puppet melodrama of the Perils of Pauline (actually, "the perils of national government") as it negotiates a new "debt ceiling limit". 


But, we all know that very soon, after much heated debate, warnings, and seeming dangers, the Congress will raise the debt ceiling and authorize enough additional borrowing to meet government's spending needs. 


Thus, Congress will soon enact more "borrowing authority".


But, what about more "borrowing capacity"? 


Is authority to borrow all that's required?  Or does the national government also require more capacity to borrow?


Just because government may have "authority" to borrow more funds, doesn't necessarily mean that government also has the capacity to borrow more funds.


For example, what if the interest rates rose to, say, 5%?  Could the national government afford to borrow more currency at a 5% interest rate?   It would have the authority to borrow, but would it also have the capacity to borrow?


What if the world's confidence in the government's ability to repay its debts fell so low that no one would lend currency to the national government at any rate of interest?  The government would still have the authority to borrow, but would it have the capacity to borrow if most of the world doubted that the US would be able to repay its debts?   Of course not.


In fact, most of the world has stopped purchasing US bonds.  The Federal Reserve picked up the slack by purchasing 70% to 80% of the bonds issued by national government under the guise of Quantitative Easing (QE). 


If the world has generally stopped purchasing US Bonds, what if the Federal Reserve also slowed its purchase of US Bonds?  The government might then still have the authority to borrow, but not the capacity.


And, in fact, the Federal Reserve has begun to "taper" its current monthly rate of QE from $85 billion/month, to $75 billion/month, to, most recently, $65 billion per month.  About half of that QE has been going to major banks, and about half has been used to purchase government bonds. As QE tapers by $10 billion/month, the government's apparent capacity to "borrow" is falling by $5 billion/month or $60 billion/year.


$60 billion isn't a devastating loss to government. It will probably reflect less than 2% of government spending. 


Nevertheless, the trend is clear.  Government's authority to borrow may be rising, but government's capacity to borrow is falling.


All of which implies that:


The national government is so broke that it can't continue without more borrowing and more credit;


The national government's capacity to borrow is drying up;


Government must increasingly rely on tax revenues to support its spending;


Without sufficient borrowing, government will be forced to significantly raise tax revenues and/or significantly cut government spending (and, in fact, that's already happening).


*  An era of difficult and painful choices now faces government-and the nation.  This difficult era will probably last for several years.  This era will be excused as the result of ideological "gridlock" between the Republican and Democrat parties in Congress. 


But ideology and political philosophy won't be the issue.  The real issue will be government's inability to borrow enough currency to continue to fund existing or promised governmental programs.  As there is less and less currency to make good on each political party's promises to their special interests, the parties will fight each other ever more fiercely for the last few dollars in the public coffers.  Gridlock is not about political ideology.  It's about no money in the Treasury.


Many of those who depend on the national government for welfare or subsidies will soon be seriously impoverished.


Insofar as over 35% of the US GDP can be traced to government spending, our "consumer" economy has become almost as dependent on government spending as a welfare recipient.  As government's capacity to borrow falls, the economy, itself, will also suffer significant reductions.


Thus, an increase in government's authority to borrow is largely irrelevant without a corresponding increase in government's capacity to borrow.


*  We can expect to soon see the day when Congress grants the government the authority to borrow another $1 trillion-but learns that even with that added authority, government lacks the capacity to borrow more than another $500 billion. 


At that point, it'll become obvious to all the emperor is buck naked.  It'll be obvious that government's capacity to borrow-that is to say, government's capacity to REPAY its debts-is far more important than government's authority to borrow.   No one will lend to the government if they don't expect to be repaid.  Therefore, when we talk about government's "capacity" to borrow, we're really talking about government's capacity to repay its existing debts.


For the past five years, I've argued that the national debt is not the "official" $17 trillion claimed by President Obama but, now, at least $90 trillion (as alleged by John Williams at or, including unfunded liabilities, over $200 trillion (as alleged by the Congressional Budget Office).  I've argued that the National Debt is, in fact, too great to ever be repaid in full. 


Government lacks the capacity to repay its existing debts.  That's not news.  For the past decade, anyone who cared to look has seen that truth.  Nevertheless, most people didn't look.  Very few cared to see.


But, now, as the world slowly begins to recognize that the U.S. government can't repay its current debts, the world is openly disputing the government's capacity to borrow more currency.   Without that capacity, the size of government will be significantly reduced, the economy will be significantly reduced, and the average American's standard of living will be significantly reduced. 


"Washington will start scraping up against the debt ceiling by Friday, the day a suspension on the borrowing limit is scheduled to lift. The Treasury will then use accounting measures that will allow the government to keep adding to the debt, but Lew said this strategy would only get the administration to the end of the month."


And what are these "accounting measures"? 


They're lies.  They're evidence of criminal acts committed by Government. 


The current law says the maximum the government can borrow is $17.2 trillion-which, coincidentally, is the same size as the "official" version of the National Debt.  But, according to, the real National Debt is closer to $90 trillion-about five times the size of the "official"/"legal" National Debt limit.


$17.2 trillion of that $90 trillion is legal in the sense that it's within the "debt limit" established by LAW.


The other $72.8 of the National Debt that's been concealed from the public is in excess of the LEGAL "debt limit" of $17.2 trillion and is thus evidence of criminal acts perpetrated by our own government.


These fiscal crimes aren't only attributed to the Obama administration.  The past several presidential administrations have been equally guilty of using "accounting measures" to conceal the crime of spending more money than is legally allowed by the debt ceiling law.

I don't know how long government has been committing the crime of borrowing more money than the debt ceiling limit allows. There's a good chance that such "accounting measures" started somewhere between 20 and 40 years ago.  If so, government has been unable to support itself and the economy for at least 20 years without relying on its own criminal acts.

How long can a government survive whose operations have depended on fiscal crimes for over a generation? 


The crime, alone, of falsifying the size of the National Debt should create a moral issue sufficient to insure the government's eventual comeuppance. 

Once the crime of falsifying the size of the National Debt so as to exceed the "Debt Ceiling Limit" is generally recognized, and the criminal nature of our government is seen, who will want to lend more currency to the criminal enterprise operating out of Washington DC?  Lending currency to the government is like lending currency to the Mafia; what makes you think that you'll ever be repaid?



*  Whether government is a criminal enterprise is almost irrelevant on a moral basis.  Whether government will or even can repay its existing debts is the crucial factor in any decision to lend more currency to the government.


It's increasingly apparent that the government is bankrupt and won't or can't pay most of its debts.  Thus, the bankrupt government's capacity to borrow will be reduced until government escapes its bankrupt condition.


Government might escape its insolvency with a global monetary "reset". If might escape its bankrupt condition with a year or two of hyper-inflation.   But, until, government abandons its criminal ways and bankrupt condition, its capacity to borrow will continue to decline and the "good times" will no longer "roll".


Church of Wells - Are they just an 'Evangelical Church' in East TX



On January 8th, 2014 I talked for an hour on my national radio show with the desperate and loving parents of Catherine Grove. They shared the frightful story of their 26 year old, Christian daughter who had found this alleged 'Church' on line last summer and found herself drawn in and invited to the headquarters of Church of the Wells in Texas. Catherine's parents had no idea Church of Wells members were skyping Catherine the few months before she actually disappeared. The parents describe Catherine as a responsible, sweet and committed Christian who wanted to grow in the Lord


About a month before she disappeared she began to withdraw from her family, school and jobs. On July 2nd Catherine just disappeared. This was after mysteriously abandoning her car and quitting her job. Andy and Patty knew that none of this made any sense.


Out of nowhere they finally got a call from Catherine, allegedly at this church location (10 hours away from where she had lived) saying she was all right and wanted to see them. They made plans to visit her Grandfather together and she was cool with that. This was soon followed by another call where Catherine said she had changed her mind and wouldn't be going and didn't want a visit from them. Andy and Patty were allowed to only talk to Catherine a few times and always with church members present. They now smelled a big rat and drove to Wells TX to find out info.


They took time off work and drove their RV from Arkansas to East Texas where the Church of the Wells was. Once there, they asked around and didn't see any so called 'church of the Wells' and were finally directed to a store. In confusion they went into the store and asked where Catherine was and were stone walled by a church member. They left and came back and were finally allowed a 'visit' with their daughter only surrounded by church leaders and members. They were not allowed to see her alone. Catherine appeared to have a staged and controlled response that she was happy and ok. It seemed very unreal to her parents. They finally left, knowing something was very wrong. Was she being brainwashed and seemingly trapped somehow?


The silence grew over the weeks as the summer turned into fall and they weren't allowed in to see Catherine. Growing in concern, they sent Catherine's older sister Amy to go in undercover and try to find her. Amy was dropped off by her parents and walked into the church store. The occult members surrounded her and started preaching for hours. As she was wanting to leave, they finally produced Catherine then lured Amy to an undisclosed location. Many hours passed and the concerned parents urged the police to check on Amy. Amy did not want to leave without Catherine and was waiting for an opportunity to get a lift back to her parents waiting location since she didn't know where she was. Catherine got into the car with Amy, and there was hope they would both be able to leave, but a church member summoned Catherine to get out of the car and she did. Why did she get out of the car? Was she afraid?

The car was driven by Rick Trudeau's current wife Anna - the same Rick Trudeau who was allegedly arrested in New York for threatening the mother of his child. Amy was driven back to the store where she returned to her parents without Catherine.


On November 4th, there is a police record that Catherine tried to run away from the church with her backpack full of clothes. A church member immediately called the police and they went searching for her. Shockingly, the parents said they weren't called and they heard about this later. Why did the police take Catherine back to the cult compound after an alleged 18 hours of running away? Why not take her to her parents or simply question her elsewhere?


On November 10th Catherine's parents Andy and Patty got a call from their daughter saying to them that 'Catherine is dead.' This was just days after she tried to escape. During that time also, witnesses report seeing a small shed outside the compound being guarded and there was thought to be a person inside it. My source thought it was Catherine being punished for trying to run away. Was she put in here, perhaps the so called 'prayer closet' for punishment? According to my source, two others who have escaped and are terrified and in hiding shared that they had also been locked in a 'prayer closet' for hours or days and now are being blackmailed with information they gave leadership in the cult when they were there.


On Nov 26, 2013 Reporter Leah Caldwell of the Texas Observer published an investigative piece on the presented 'evangelical church' Church of Wells and the building controversy of Andy and Patty Grove trying to get their daughter Catherine out. Caldwell was also 'ever so politically and with Christian sound bites' stonewalled by church leadership.


After talking with Catherine's parents I studied the Church of the Wells web site, statement of faith, manifesto and other presented info. I noticed with fascination the 'supposed' and posted affidavit by Catherine, speaking against any wrong doing and implying she was freely staying with this church group.


As an Evangelical Christian and Pastor's daughter, I am very aware about what the Holy Bible says and what the message of Jesus is. The Holy Bible tells us to honor (Matthew 15:4) and love our parents not to treat them as idols and abandon them. The Holy Bible calls us to be a light to the world, trust the Lord Jesus and reach out to people, not hide in a 'locked prayer box' separate completely from the world and judge them. Be separate (Romans 12:2) from the world but be in the world, not hide in a cave somewhere. The real Christian faith is defined as repentance of sins and growing in a relationship with Jesus Christ - not turning church or cult leaders into 'gods' and doing everything they say.


For a real Christian, of course nothing comes before God but God also says be in the world and not 'of' them. The message of Jesus Christ is the exact opposite of what the Church of the Wells teaches, preaches and pushes in my opinion. It is a cult that hides behind 'Evangelical Christian church.' I am the daughter of a retired evangelical Pastor and as I said before I am a sincere, evangelical Christian and a member of real church now.


The Church of Wells is about as 'Evangelical Christian' as hell is an ice cube factory! I can feel the assaults by church leaders against me even now. "Laurie Roth is evil and going to burn in hell." My response will be: "I've been there and your parents are fine. They are waiting for you."

When reading through Church of Well's belief statements, several clear themes came soaring off the page. The church skeleton looks like this from their own words: Salvation is not secure; Holiness, being like Jesus and salvation is only achieved when you get rid of the idols...and magically these are - parents, work, careers, dreams, money, religious structures that are all 'false'. They talk endlessly in their verbiage about 'separation' as the goal. Thus, the emotional and spiritual trap is set for the innocent, young and naive Christian or 'searcher' who doesn't know the real Holy Bible in context and doesn't see or feel the distortion or danger...certainly in time.


Is the Church of Wells creating the exclusive pull to Separateness' and describing families as being 'idols', to seduce and trap new members away from everything and everyone except them? For what purpose? Who gains in this?


I dug deeper and found more I checked with a top level human trafficking source. He has followed and is investigating this 'Church.' He will remain off the radar for now since an ongoing investigation is mounting regarding Church of the Well. He stated in our interview.

"In this case there are many things that are indicators of trafficking. This is an organization that presents as a church but is structured as a for profit organization of businesses that benefits from many forms of labor. Construction, lumber, cleaning, restaurant work and others. If a few benefit from the labor of many then the amount of income is quite large in addition to the alleged victims dissolving their possessions and cash - giving to the group."


In the span of just a few weeks its reported that several new and naïve recruits have been divested of $30,000. Obviously, the members pool their money, assets and checks...then work all kinds of jobs for the group, naturally flowing down through the heads. - Stealing and redistribution central. Shall we quote another scripture here?


A few 'facts' on record about this 'church'


Church of Wells is a Texas for-profit corporation, "Charity Enterprises Incorporated." 


Directors as of June 2012: Jake Gardner, Masao Gonthier, Cory McLaughlin, Jesse Morris II, Sean Morris, Daniel Pursley, Ryan Ringnald, Richard Trudeau, Tanner Trudeau


Subsidiaries: R&R Mercantile - grocery, Texaco gas station #351955 (Chevron). 


The headquarters of Church of Wells. 502 Rusk Ave / PO Box 861, Wells, TX 75976. 

Website boasts a full service restaurant, bulk foods, meat market, Laundromat 936-867-5300.


Green Texas Lawn and Landscape 936-867-4001


3Fold Construction - renamed Charity Construction 


Trudeau Tree Service 518-524-4894


Custom Cut Lumber 


Cory James Art




MannaMedia - a website development company. Web hosting, website building and maintenance. The website is now dead and has not been renewed.


It makes sense that the teachings say that the alleged victims are not saved as long as they need sleep, long for their loved ones, and desire contact with family members. This sounds like classic 'cult' material to me.


Other than forced and locked prayer closets and not allowing private family visits, they have allegedly used the 'power of prayer' in interesting ways as well. In 2012 this group prayed over a new born infant that needed medical attention she was allegedly denied. According to reports, they then prayed over her for 15 hours before some outside person found out and called the authorities


Most recently, one of the heads of the group Rick Trudeau was allegedly arrested in New York for aggravated threats against the mother of his child. He was there to take his kid back and is reported to have said that God had told him that she was going to die on a certain date. This was the enlightened guy that Catherine was staying with on the compound back in East TX. Now he has been arrested for threats and she is perhaps a material witness having lived with him. She should at least be picked up and questioned by police. Perhaps if the cops came to talk with Catherine and took her someplace privet, church members couldn't intimidate her by surrounding her with church members.


If there was ever a need and a time to call in an investigation and action by the attorney General of Texas this is it. We have several testimonies of alleged church members being locked in 'prayer closets,' 2 who have escaped and are hiding in fear; A sick baby who was denied hospital care and died; Creating a world of Biblical lies to control and manipulate complete separation with their members; They are collecting their money, getting them to then work for the group and in essence be slave labor. They build a huge fear of not being saved and going to hell if they don't comply. Is the Church of Wells a cult that is involved in human trafficking - 'forced labor' and other crimes? You decide.


Trafficking victims protection act: "Anyone held in service of another through force fraud or coercion for purposes of forced labor or commercial sex is a victim of human trafficking."

I call on Texas police to call Catherine Grove out of this church for questioning since Rick Trudeau has been arrested and she was living with him. What does she know? I also call on the Honorable Attorney General of Texas Greg Abbott to take action and investigate this front of a church and expose its real agenda and create a real situation where people can leave and get help...such as Catherine Grove. It is beyond time to stop looking the other way. This is awkward and takes courage. Other family members come forward out of the shadows. Authorities rise up.


Please respectfully join me in writing the Attorney General of Texas and demanding an investigation into The Church of the Wells. Address: The Attorney General, The Honorable Greg Abbott P.O. Box 12548 Austin TX 78711-2548


Let us shine the REAL LIGHT OF TRUTH on this fake out church that is destroying lives and ripping apart families. While we are at it, lets deliver Catherine Grove and many others out of this.

Most people think who cares about the Puerto Rico bond market.  What about

70% of U.S. muni bond funds hold Puerto Rico securities, which are tax exempt nationwide.  Municipal bond defaults are coming.  Will it be the catalyst of the first domino or will it be just another leaf in the breeze.


UBS Drops First Shoe On Puerto Rico Bond Investors


UBS Puerto Rico bond investors better look out; the giant investment bank's research analysts just dropped the first shoe on your heads.


Last week, UBS issued a report stating that at least one of the Big 3 rating agencies, Moody's, Fitch or Standard & Poor's, will cut a swath of Puerto Rico's debt to "junk" in the next month, according to Michelle Kaske of Bloomberg. The UBS report predicts that the other two agencies will soon follow.


The probability of a downgrade of the Commonwealth's general obligation and related bond ratings by all three rating agencies into the non-investment-grade category by the end of the June 30 fiscal year is "very high," according to Kaske.


The warning comes way too late for UBS' retail customers in Puerto Rico whose portfolios are mostly concentrated in Puerto Rico bonds and UBS' closed-end funds comprised largely of these bonds. These poor folks have seen their retirement accounts get crushed by 50-60% since September 2013.


Bond investors who read this UBS research report must feel like the 2000 and tech stock investors felt when they heard about research analyst's internal emails describing their stocks as "junk" and "pieces of s-t".


UBS has been aware of the perils of Puerto Rico debt for years, but, nevertheless continued to recommend that it's clients put all of their eggs in the UBS Puerto Rico closed end bond fund basket.


Yet another shoe was dropped last week. According to Reuters, Puerto Rico bonds facing possible junk ratings are "no longer part of the S&P National AMT - Free Municipal Bond Index because of the debt's outsized yields and spotty liquidity". The result of this policy shift, according to Reuters, "raises worries that demand for Puerto Rico debt from investors tracking the index will soften" when Puerto Rico is readying a bond sale or other possible financing.


This week, the Wall Street Journal reported that Puerto Rico is preparing a debt offering of some $2 billion in the coming weeks. Puerto Rico is trying to demonstrate that it can raise money in a debt offering, however, the yields it will have to pay of up to 10% could likely scare off investors and further reduce confidence in Puerto Rico's finances.


If UBS is right and a downgrade is imminent, the repercussions for Puerto Rico and Puerto Rico debt holders will be grave. "A downgrade to junk may limit demand for Puerto Rico debt because some money managers can't buy securities rated below investment grade," Michelle Kaske of Bloomberg noted. And almost 70% of U.S. muni bond funds hold Puerto Rico securities, which are tax exempt nationwide, according to Kaske, citing Morningstar research.

Mom and Pop investors whose brokers told them that these bonds were a great place to concentrate their retirement and life savings are in for a rude awakening when the expected downgrades materialize.


No doubt, UBS Puerto Rico bond investors, the second shoe will again fall squarely on your heads.


Zamansky LLC are securities and investment fraud attorneys representing investors in federal and state litigation against financial institutions. For more information about Zamansky LLC, please visit


Be sure to listen to Financial Survival radio program live at 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.

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by Herbalist Wendy Wilson


February may mean lots of valentines and chocolates but it is also the worst month for getting the cold and flu. Why is that? Last year about 166 million flu shots were given, which contained bird and swine flu strains. About 60% of the US population got the flu shot. The CDC and health authorities reported they were shocked and amazed that folks last year developed a severe respiratory illness caused by the pH1N1 bird flu. This strain emerged in the highly advertised 2009 pandemic. Last year this strain hit folks hard between the ages 18 and 49.  By the time February arrives viruses have several months to circulate and make more people sick. So, as Dr. Rebecca Carley often says, "Instead of saying the flu shot protects you; replace the word "protects" with "infects" you with disease." Let's find out what we can do to avoid getting colds and flu.



It can be hard to get truthful science from the businesses which make their profits from disease such as the pharmaceutical companies, the AMA and the CDC. They would have us believe that the flu outbreaks are because people are not getting vaccinated, when the opposite is the case. A vaccine is an artificial infection and goes against nature and the way our immune system operates to neutralize infectious pathogens. Pharmaceutical companies now add adjuvants to supercharge the vaccine and there seems to be three things which are affecting the immune system.


  • The immune system can be fooled into thinking the pathogen is suppose to be there and does not make an antibody to deliver immunity.
  • The immune system is confused when molecules are similar in the vaccine pathogen and normal bodily functions and the immune system can attack the body instead. This can cause auto-immune disease, narcolepsy and other neurological diseases and learning disabilities.
  • The immune system is put into shock and its normal functions are paralyzed.  



We're told that the flu risk is highest in February and there are currently 41 states reporting high rates of flu cases. The states with the lowest reports of flu are: Alabama, Arkansas, Florida, Georgia, Hawaii, Iowa, Mississippi, New Hampshire, South Carolina and Texas. The map shows the flu stats on vaccine rate by state provided by the Department of Health & Human Services With the exception of Hawaii and Iowa the states that do not reach 50% vaccination saturation have fewer flu cases reported. Google also seems to report Internet searches regarding flu topics to the government (CDC) and is being called Google's Flu Trends. Apparently authorities think that Google can track the flu stats faster than traditional reporting systems even though they are known to overestimate flu cases. The government also tracks the sales of over-the-counter cold and flu products to help with statistics.



The Institutes of Medicine released a consensus report last year, which concluded there are 135 vaccine adverse events in their study and the possible adverse effects from the flu vaccine documented in the medical literature include:

  • Febrile seizure
  • Narcolepsy
  • Asthma
  • Guillain-Barré syndrome

All the medical literature and medical authorities reassure patients that the risk of adverse events or death is minimal. The question is do you believe them?



It is amazing when medical professionals come forward with the truth about vaccines. The real statistics on the decline of disease before the development of vaccines has been published before by numerous authors. Most don't take it seriously because the authors did not have any medical credentials. Well, how about the International Medical Council on Vaccinations supported by both physicians and laypersons. You've been told by the CDC, AMA and your doctor that you can't get the flu from the flu shot. It is just a coincidence and you probably were infected with the flu before you got the shot. Well, according to the stats the International Medical Council put together, that is not the case. Flu vaccines make you more vulnerable to virus infections. They report that there was a 90% decrease in deaths from flu and pneumonia prior to creating flu vaccines. In the 1970's the death rate by flu was 20-25 per 100,000 nationwide. That all changed in the 1980's when flu vaccines were used increasing the death rate to 30 per 100,000. These facts were reported to the CDC in 2003 and were published in the journal Vaccine.


"National influenza-related mortality rates among seniors increased in the 1980's and 1990's as the senior vaccination coverage quadrupled." Journal Vaccine


"The results of this review seem to discourage the utilization of vaccination against influenza in healthy adults as a routine public health measure." Journal Vaccine



The medical establishment actually took stock of the effectiveness of the flu vaccine. They expected to see a 35% to 40% reduction in mortality rates but in 2005 the truth smacked medicine in the face that there was zero (0%) reduction in mortality due to using the flu vaccine. The medical establishment is biased when it comes to their vaccinations.  They can't accept the truth of their own research and continue to increase the mortality rates using vaccinations. Dr. Peter Doshi weighed in on the review of flu vaccines in 2005 and said, "Public officials only need to claim that the vaccine saves lives and that most people, including doctors, assume there is solid research behind the claim and unfortunately that is not the case." What is worse is the CDC recommends flu vaccines for children as young as six months when in 2012 there was a comprehensive review of 75 random control studies with findings that showed there was no evidence that the flu vaccines benefited the children and was as effective as the placebo. They also stated that flu vaccines offered serious harm such as narcolepsy and febrile convulsions ("Vaccines for preventing influenza in healthy children (Review)," The Cochrane Library, 2012, Issue 8).   So, what is scary is there is an abundant of legitimate scientific studies showing there is no benefit to vaccinations and that there is harm associated with them and the medical profession has made a conscious decision to ignore these facts and put patients at risk.


There is great debate in the halls of medicine what is actually the flu. In 2009 the Cochrane Vaccines Field published statistics on what is actually the flu and what isn't. Their research reported that during the winter months about 7% to 11% of the cases are actually flu and 93% of the cases are merely colds. In reality a small percentage of the pathogens are genuine influenza. So, if influenza is relatively rare and a majority of the cases are pneumonia or rhinovirus why then do we have the excessive push for flu vaccines and the harvesting flu strains to include in the vaccines? Again, it is this simple; when medicine uses vaccines to protect you from the flu you are really getting injected with the flu. One report also done in 2012 showed that getting the flu shot offers recipients a five (5) times higher risk of getting a rhinovirus. A rhinovirus can sometimes mimic flu symptoms and people think they get the flu from the flu shot. Researchers noticed that the flu vaccine had "some unknown biological mechanism" which reduced immunity and folks were catching cold viruses. What was even more suspicious regarding the effectiveness of vaccines is that often in research for the control group needing a placebo they would use the hepatitis A vaccine.



Modern medicine is tinkering with your immune system through vaccines. If you need proof just listen to what an immunologist with over 40 years experience has to say:


"The immune system remains a black box. We are still doing the same tests I did when I was a medical student in the late 1960's. It's staggeringly complex with tens of thousands of genes. That's an awful lot of moving parts and we don't really know what the vast majority of them do. We can't even be sure how to tell when the immune system's not working right, let alone why not, because we don't have good metrics of what a healthy human immune system looks like. We don't even know what an immune stimulant even means." Dr. Garry Fathman, Professor and Associate Director of Immunology & Rheumatology at the Institute of Immunology, Transplantation and Infection  


Well, if they don't know what the hell they are doing ask why there are adjuvants in vaccines to "stimulate" your immune system. You need to also remember that pneumonia is not flu but is often counted as the flu statistically. Remember, the real influenza is rare.


CONCLUSION In reality February is not a big flu month but a big rhinovirus month because 60% of Americans believe flu shots offer health benefits and they get the shots, which suppress their immunity and they get sick with other pathogens. I hope I've shed some light on the flu vaccines and why people feel worse after they get them. More research is cropping up on how much more effective it is to use nutrition and supplements to offer greater resistance to flu and cold pathogens. Natural immunity does not come through vaccines. Understanding that is the first step towards a stronger immune system and acquiring life-long immunity. If you would like to learn more on how to strengthen your immune system and reverse the damage from vaccines call Apothecary Herbs and ask about their organic immune boosting and organ cleansing products. Call now toll free 866-229-3663, International 704-885-0277, where your healthcare options just became endless. Now SAVE 20% on 2 oz & 4 oz herbal tinctures for cold & flu. 



  by Wendy Wilson Herbalist 



The Affordable Care Act, which is suppose to make healthcare more accountable is rippling through the healthcare system like a tsunami rushing towards the ashore. The Seattle Children's Hospital filed 125 claims on children, which acquired health insurance under their state exchange and of the 125 claims filed they received 20 responses of which 8 claims were denied. Moody's Investors Services reduced the rating associated with American's healthcare from "stable" to "negative" stating it is due to the uncertainty of America's healthcare industry.   Investors are not the only ones having huge doubts about the ACA. Healthcare insurance companies are in a panic because the youth of American are not signing up as expected to accept the financial burden of the old and uninsurable. The Congressional Budget Office estimates that 30 million Americans will remain uninsured under the ACA. For varied reasons people are not participating in their state exchanges citing; the premium is too high, the insurance is not a good value, political reasons, religious reasons or they found a better deal elsewhere. Looks like the insurance companies are beginning to have doubts and think that they've been played by their government. Who can blame the insurance underwriters and investors for having doubts because the rules to the ACA keep changing without Congressional oversight? Enrollment dates keep changing and the demographic requirements of the enrollees keep changing. This makes people wonder if any insurance or health claims will be honored. A recent example is the denied claims processed by Seattle Children's Hospital.   As it turns out the hospitals with the highest rating in the country are not accepting many of the insurance plans on the state exchanges. Why? The main reason is that the insurance plans have reimbursement caps. Depending on who is reporting; the statistics on enrollees under the age of 35 are between 15% and 34%. So, market investors are thinking this whole healthcare tax was not properly assessed to begin with. What the masterminds forgot to forecast for was trust and do the American people trust their government?



Recently I received a phone call from a show listener who alerted me to check into the Medicare admission rules. Apparently folks are showing up at hospitals for treatment and which are not admitted but are merely "under observation". Under Medicare if a patient goes to the hospital and is classified as "under observation" that their stay cannot exceed 48 hours and there must be an order to discharge or the doctor has to write a new order to admit the patient. The average stay "under observation" is within 24 hours. The same process applies to Medicaid patients and private insurance allows only 23 hours. Some patients that were not discharged or admitted within the required timeframe have discovered that they are responsible for their hospital bills out-of-pocket. This admission requirement for Medicare and Medicaid patients is in an attempt to audit hospitals for insurance overpayments. So, if the patient is legally admitted after the "under observation" time expires the hospital has to refund the insurance payments. The people most victimized by the "under observation" stipulation are seniors costing them hundreds of dollars per day. Don't count on hospital and nursing home administrators or staff to look out for your wallet and do their jobs correctly. Why? Because, with the exception of NY, there are no legal requirements for hospital administrators or doctors to notify patients what status they are admitted under. So, a majority of family members and the patients who are in the hospital for many days may not actually be admitted. If you discover a family member is "under observation" and needs to stay more than two days, you will need to seek out the attending physician to help with the admission. If you get caught in this government healthcare dragnet, beware the appeals process is a nightmare. You will have to ask The Center for Medicare Advocacy for help in navigating the red tape.   



Some folks are asking if hospitals are doing their due diligence for their Medicare and Medicaid patients. Hospitals and doctors have to make money to stay in business and if the new healthcare reforms are limiting reimbursements and what doctors are paid then sure, the healthcare professionals will look for loopholes to make money. Not telling patients and family members about the restrictive requirements on admissions may seem sneaky and unethical in order to make money, however it is justified by them because the government isn't paying enough to stay in business, is denying claims and doctors didn't create the ACA. Professionals get paid, volunteers don't. Some experts are claiming that this whole thing is a way to game the system and it is costing patients ungodly amounts of money. Perhaps, but one thing is sure; something like this only compounds a patient's recovery.



With the way the ACA has been structured it will promote a conversion to a one-payer healthcare system. If that happens will it be illegal for physicians to practice outside of the system? An inverted morality removes an individual of their rights and property. Dinesh DSouza and Michael Shermer were interviewed at Oregon State University Socratic Club 10/8/2012 and they did a good job of explaining the inverted morality of government-run programs such as the ACA, which strip the virtue from a transaction, demonizes moral people and converts gratitude to entitlement. Take six minutes to watch this video and you'll see what I'm talking about



The government doesn't make or produce anything but takes from those who do.  According to the Department of Agriculture, in 2006 there were approximately 25 million Americans on food stamps. Today there are 47 million on food stamps. A recovering economy will always have fewer not more people on food stamps. The bigger government gets the private sector is forced to offer fewer job opportunities and more people are forced onto government assistance. The answer to return America to health and prosperity is to limit the size and power of government. The alternative is to have more than just your health under observation.



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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.  

Sea Cucumber- Cancer Cure

by Ty Bollinger

Despite the name, sea cucumber is not a vegetable. It's a marine creature (related to the sea urchin and starfish) that lives all over the world on the ocean floor and has been used in traditional Chinese medicine for hundreds of years. In 2011, researchers at the Robert H. Lurie Cancer Center (in Chicago) studied the effects of sea cucumber extract on human pancreatic cancer cells and quickly discovered that this amazing extract is able to stop cancer cells from spreading and even activates apoptosis (programmed cell death). Amazingly, pancreatic cancer cells were actually dying within five minutes  of exposure to the extract! Since then, in vitro (test tube) studies have shown that the fatty acids and saponins found in sea cucumber prohibit cancer from metastasizing and creating new blood vessels, while inducing apoptosis.


Additionally sea cucumber has the ability to activate the immune system's killer cells to attack breast cancer cells.  As reported by Ethan Evers, author of The Eden Prescription, previous research shows that sea cucumber is effective at killing lung, skin, colon, prostate and liver cancer cells. Frondoside A (a component of the sea cucumber) is believed to be a key component in the battle against cancer. A recent study, published in PLoS One, has confirmed just how powerful frondoside A truly is. According to the study, frondoside A " can kill 95% of ER+ breast cancer cells, 95% of liver cancer cells, 90% of melanoma cells, and 85-88% of three different types of lung cancer." When given to mice with non-small cell lung cancer, frondoside A was found to shrink tumors by 40%in only 10 days. Studies have shown frondoside A to be as effective as chemo at killing cancer cells but without any side effects.


Sea cucumbers contain a compound known as chondroitin sulfate. A study by Brazilian scientists published in September 1996 in the Journal of Biological Chemistry found that chondroitin sulfate has anticoagulant activity. This helps to prevent against blood clots. Also contained in sea cucumbers is glucosamine, and the combination of chondroitin sulfate and glucosamine is a popular "tag team" to help relieve arthritic pain, due in large part to their regulation of prostaglandins.


Toothpaste made with sea cucumber extract was shown to be effective at treating gum disease, according to a report in the Journal of Oral Science. This makes sense due to the fact that sea cucumber is anti-inflammatory, heals wounds (due to arachidonic acid), and is also antibacterial. Patients experienced a significant reduction in bleeding gums, swelling, and the depth of their periodontal pockets (as compared to the control group). Sea cucumbers are higher in protein than almost any other food, except for egg whites.


While your doctor won't likely be recommending sea cucumber extract to treat cancer, you can find dried and powdered sea cucumber in health stores either as a single ingredient supplement or mixed with other ingredients in a formulation. The liquid extract is often a part of a formula (for inflammation and/or joint pain), but tablets consisting of pressed ground, dried sea cucumber are normally available.


WARNING: Do not take sea cucumber in any form if you have an allergy to seafood, or if you are taking anticoagulants as it may act as a blood thinner.


~ Ty Bollinger is the host of "Outside the Box Wednesdays" on the Robert Scott Bell Show. He is also author of the best-selling book, "Cancer-Step Outside the Box"and his latest book, "Monumental Myths of the Modern Medical Mafia and Mainstream Media and the Multitude of Lying Liars that Manufactured Them."

His websites are and



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