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American Survival Newsletter:
Combining the World of Finance, Health & Politics
6/13/14   
American Gold

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Edited by Alfred Adask
Friday, June 13th A.D. 2014
 
MARKETS

 
Between Friday, June 6th, A.D. 2014 and Friday, June 13th, A.D. 2014, the bid prices for:

 

Gold rose 2.0 % from $1,252.30 to $1,277.70

Silver rose 3.5 % from $19.01 to $19.67

Platinum fell 1.4 % from $1,448 to $1,428

Palladium fell 3.6 % from $843 to $813

DJIA fell 1.0 % from 16,924.28 to 16,755.49

NASDAQ fell 0.4 % from 4,321.40 to 4,304.04

NYSE fell 0.6 % from 10,904.20 to 10,842.20

US Dollar Index rose 0.2 % from 80.43 to 80.61

Crude Oil rose 4.0 % from $102.79 to $106.96

 
 

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

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

Sub-prime Student Loans

 

by Alfred Adask

 

Bloomberg's recent article ("Buy a House or Pay Off College? $1.2 Trillion Student Debt Takes the Stage in Capital") opened by describing the plight of Jennifer Day-a college graduate who "spends 12% [$374/month] of her take-home pay on debt that funded a master's degree in urban and regional planning, money she'd rather be saving toward a home."

 

But, not to worry, since, "Under legislation sponsored by U.S. Senator Elizabeth Warren of Massachusetts, Miss Day would save about $75 a month on her payments." 

 

Gee, that's great!  $75 a month!  $2.50 a day!  $900 a year!  Surely, that extra $900 will be more than enough to help those crazy kids buy their first homes!

 

Senator Warren's bill would let 25 million borrowers with federal and private loans refinance their balances at lower interest rates, according to Education Department estimates.  

 

The bill proposes to cut the interest rate on student loans, but not the principal.  The government won't repudiate any part of the original debts.  They'll only let the college kids "refinance" those loans a slightly lower monthly payments. 

 

Why?  Probably because the financial system needs that $1.2 trillion in college education debt as collateral to justify trillions more in additional loans.  

 

Under fractional reserve banking, if you put $1 trillion in debt-instruments in a bank vault as collateral, the bank can then loan up to another $10 trillion that it just "spins" out of thin air as consumer loans to help stimulate the economy. 

 

The banks use mortgage notes as collateral.  They use car loans as collateral.  They use college loans as collateral. 

 

So, the college kids shouldn't complain much about their student loans.  They're functioning as wage slaves who are paying off some kind of loan.  If they weren't paying off on the college loan, they'd still be working as wage slaves to pay off their car loans or their new home loans.  In the larger scheme of things, they're doing their job by working as wage slaves to make a paper debt instrument (their college loan or mortgage) a valuable, performing debt-instrument suitable for use as collateral to justify making more loans to others who go into debt and thereby also become wage slaves.

 

(Some readers may suppose my persistent references to "wage slaves" is too cynical.  Well, stick around.  As you'll read, I'm not alone in equating debt to slavery.)

 

However, the fact that Senator Warren is sponsoring legislation to reduce college loans payment by a whopping $75/month is evidence that the government fears that more and more college loan recipients are sensing their "wage-slave" status,  may say "To hell with it!" and simply stop repaying their student loans. 

 

If that happened, much of the $1.2 trillion in college loans would become worthless, much of the additional loans made bases on the $1.2 trillion in college loan debt instruments might have to be called in and our $17 trillion economy might suffer a several trillion dollar loss.

 

Thus, even though much of this "currency" that the college kids borrowed was intrinsically worthless and "spun out of thin air," in our debt-based monetary system, those illusory debts can't be repudiated without risking a serious jolt to the economy.  Therefore, Congress, in its infinite wisdom, has tried to mitigate the student's growing impulse to simply repudiate their debts by reducing those debts by a whole $75 a month.  Who knows?  By cutting the students' loan costs by $75/month, the students may accept their status as wage slaves.

 

On the other hand, it may well be that if America's college kids decided to chant, "Hell no! We won't pay!," their collective refusal to pay much or all of the $1.2 trillion debt might be enough to badly damage or even collapse the US economy.

 

The Bloomberg article continues:

 

"Alleviating the burden on student-loan borrowers, who have amassed more than $1.2 trillion in debt, has been a focus this week for Democrats such as Sen. Warren, concerned about the drag on the economy as young people avoid buying homes or cars or starting a business.

 

"'That makes this an emergency situation,' Warren said on Bloomberg TV."

 

You bet it's an "emergency," alright.  But not because our college grads can't afford to buy their own homes, cars or start a business.  It's an emergency because the kids are talking about simply refusing to pay any more on their student loans.  If the kids bail on their student loans, the economy may take a serious shot-and that's the "emergency" that has Senator Warren's knickers in a knot.

 

To understand the dimensions of this potential "emergency," note that the $1.2 trillion student debt is mathematically equal to the $1.2 trillion in US treasuries held by China.  Note that some people have worried for several years that if China suddenly sold off all of its $1.2 trillion in US bonds, the adverse effect on the fiat dollar and even the US economy might be ruinous.  Thus, we can infer that if much of the $1.2 trillion in student loans were repudiated, there could be a significant adverse impact on the US economy.  

 

Apparently, President Obama also recognizes this potential "emergency" since he endorsed Senator Warren's bill and issued an executive order to expand a program that eases student loan payments. 

 

"The bill . . . would be paid for by imposing new taxes on wealthy individuals. It would let borrowers refinance using 2013-2014 interest rates set for their type of loan. For example, someone who took out an undergraduate Stafford loan in the 2011-2012 year at a 6.8 percent interest rate could refinance at the 2013-2014 rate of 3.86 percent.

 

 

"[But] Senate Republican Leader Mitch McConnell advised members against supporting the bill, calling it a 'tax increase styled as a student-loan bill'."

 

Thus, we can bet that Senator Warren's proposed bill may not clear the Senate and probably won't clear the House.  That means the college-kids/wage-slaves probably won't even get the proposed $75 a month reduction in their student loan payments.

 

If so, we can expect the movement to default on student loans to grow.

 

"Jennifer Day, the consultant, is already enrolled in one federal program that lets her pay less each month by stretching out her payments to 25 years."

 

 

Well, thank yew Mister Government!  Given this new "federal program," Ms. Day might not even be 50 years old when she finally finishes repaying her student loan for five years of college. 

 

Q: Is this a great country, or what?! 

 

A:  "or what".

 

"[Jennifer Day's] loans have interest rates of 6.8 percent and 7.9 percent. She's rarely missed a payment, yet her balance of $46,749 has barely budged from when she graduated four years ago because most of her payment goes toward interest.

 

 

"You can get a mortgage for half of that interest rate," said Brunell, who wants to pay off her debt before starting a family. "It definitely impacts decisions, big and small."

 

"While I don't regret the decision to go to school, my student loans constitute long-term financial slavery," Brunell said. "I don't think any 18-year-old is fully prepared for the daily impact of actually paying them off."

 

Exactly.  First, my reference to "wage slaves" is virtually synonymous with one student loan recipient's reference to "financial slavery".   What some readers might regard as cynicism in me, is regarded by at least some student loan recipients as an objective description of the truth.

 

Second, and more importantly, how can a society reasonably impose a loan on an 18-year old kid that might take 25 years to repay?  This isn't a loan.  It's very near to the involuntary servitude that's prohibited by the 13th Amendment.   

 

Congress knows that, one way or another, sooner or later, a significant percentage of student loan debtors are going to repudiate their loans. Some will choose to do so.  Some will be forced to do so by by economic circumstances.  But whenever the moment comes that much of that $1.2 trillion in college loans is repudiated, there could be several trillion dollars' worth of consumer loans that may have to be recalled from our $17 trillion annual GDP economy. 

 

As Senator Warren implied, the threat of default on student loans is an "emergency". 

 

It's also an inevitability. 

 

It's going to happen.  Just as surely as we were guaranteed to see a housing debt collapse back in A.D. 2007 & 2008 when the sub-prime mortgages were repudiated, we're going to see a student loan collapse in the next couple of years.

 

After all, what is a loan made to an 18-year old high school graduate at an excessively high rate of interest,  which debt might last for 25 years-if not a "sub-prime" loan

 

The student loans were, in many instances, just as much "sub-prime" as the mortgages made to unqualified borrowers from A.D. 2000 through A.D. 2007. 

 

At 18 years old, high school grads don't have jobs, don't even know what kind of work they'd like to do, won't have a "real" job until they graduate at least four years later (if then).  These kids are taking out student loans because they hope to eventually find work in an economy where government hasn't shipped many of our industries, factories and jobs to foreign countries and encouraged illegal aliens to enter this county to take some of the remaining jobs and depress our average wages and standard of living.

 

But given the outflow of American jobs and influx of illegal aliens into an economy that's been in recession for six years and may still be teetering on the edge of depression, how many of these college students have a realistic chance to repay their college loans?  How many students do not?

 

Nevertheless, the banks have said, "Well, we'll just loan $50,000 to 18-year old kids who won't even have a job until four years after the loans begin."

 

What could possibly go wrong?  

 

In the end, the kids will realize that they've been played.  They've been taken advantage of.  They've been exploited by unscrupulous universities that want to over-charge for education and banks that want to lend money at excessive interest rates that most college kids can't reasonably be expected to repay-and by a government that has severely damaged the US economy.  

 

Those college kids who took our student loans were "sub-prime" borrowers and they will follow the same trajectory as the previous mortgage sub-prime borrowers. 

 

The $1.2 trillion in student loan debts will be significantly repudiated.  The economic impact will be significant.

 

How else could it be?

When China Stops Buying Gold

 

by Alfred Adask

 

In "The Trigger That Could Send Gold Prices Through The Roof," StreetAuthority reported:

 

 "Chinese officials are quietly building the world's largest national reserves of gold bullion . . . and within the next year, the Chinese government reportedly wants to shock the markets with a surprise announcement of their pumped up holdings.

 

"Over the past 12 months the Chinese government has been stockpiling gold, with unprecedented quantities being bought and sold through markets in Beijing, Hong Kong and Shanghai.

 

"Some of this buying is being reported... but the majority of it is not. Because of this secrecy, few know that China (already by far the world's largest gold producer) has surpassed India as the world's largest gold importer for the first time in recent history."

 

To understand the significance of China being both the world's largest gold producer and the world's largest gold importer, suppose that I were a billionaire and I spent $100 million purchasing some gold.  Would that prove I viewed gold as the ultimate investment?  Or might it merely mean I had more money than I knew what to do with and spent $100 million on gold the same month I spent $100 million on a yacht for my mistress?

 

But suppose I were a billionaire who not only spent $100 million purchasing physical gold, but also abandoned my mistress and took to the mountains with a pan, shovel and mule to prospect for more gold.  The fact that I wasn't merely buying more gold, but actually devoting my time and energy to prospect for more gold would be much stronger evidence of my conviction that gold is a tremendous investment.

 

Likewise, we might ignore China's determination to buy more gold on the international market as simply evidence that China that has huge savings and a desire to get rid of its $1.2 trillion US fiat dollars. 

 

But China isn't only the world's largest importer of gold. It's also the world's largest producer of gold.  China isn't simply trading dollars for gold.  China is spending enormous sums to mine more gold than any other nation on earth. 

 

More, China isn't merely mining that gold and selling it right now.  China is holding every ounce that it buys or mines for some time in the future.  China is investing in gold.  Big time.

 

China is the "black hole" of gold.  Gold goes into China and it does not come out.  China buys gold.  China mines gold.  But China doesn't currently sell gold. 

 

Implication?  China seems convinced that owning gold is vital to the future prosperity and possible survival of any nation or individual. 

 

Further, China seems convinced that the value of gold will rise dramatically in the foreseeable future.  If that weren't true, China would be selling gold now to make a fast profit, rather than holding gold for some future time or events.

 

China is probably also convinced that the political power associated with gold will also rise dramatically in the foreseeable future.

 

I won't argue that China's convictions are infallible, but they're a good indicator that the price, value and power of gold will rise dramatically over the next several years.

 

*  One more implication:  If China is about to announce that it has, say, 8,000 tons of gold, we might ask Why would they make that announcement? 

 

Why wouldn't the secretive Chinese conceal the true size of their gold treasury?

 

It seems unlikely that China would merely want to brag about their supply of gold. 

 

But it might be that they believe that they've acquired all the "cheap," underpriced gold that is available for easy acquisition.  It might be that China recognizes that the international supply of gold available on the commodities markets is about exhausted.  It might be that China would want to signal that the US Treasury's supply of gold is nearly depleted-and the price of gold is about to skyrocket. 

 

Y' see, China has delighted in the incredibly low price of gold over the past two years.  Those low prices made acquisition of thousands of tons of gold more affordable.  But once the world supply is largely depleted and it's no longer possible to acquire massive amounts of gold at cheap prices, then whoever holds gold will want the price to rise

 

In other words, while China was buying, say, 8,000 tons of gold, China would want the price of gold to stay as low as possible.  But once China: 1) has acquired 8,000 tons;  2) can't find much more gold that's easily acquired; and 3) hold the world's biggest treasury of gold-then China will use its influence to cause the price of gold to rise.  A lot.

 

If China figures that it can't acquire much more gold, would China rather have 8,000 tons of gold be priced at $1,300/ounce?  Or would it rather have 8,000 tons priced at $5,000 per ounce?  Or even $25,000 per ounce?  The answer's obvious.

 

Why would China figure that it can't acquire much more gold?  Maybe because it knows the US Treasury is exhausted.

 

Thus, China's possible announcement that it holds the world's largest supply of gold could be their way of saying "Game over-we won!" (and by implication, the West, and especially the United States, has lost). 

 

The implications for the US financial system might be disastrous.

 

The implications for the fiat dollar might be disastrous.

 

The implications for the price of gold and for those holding gold might be fantastic.

 

*  You can see what I mean in the chart below.  It shows Chinese gold imports over the past seven years and record increases over the last three years.

 

Graph of Chinese gold imports

 

 

From A.D. 2007 to 2012 (six years), China imported a total of 1,561 tons of gold.  In A.D. 2013 (one year), China imported 1,497 tons.  Thus, they almost doubled their gold supply in A.D. 2013 and now hold a reported 3,000 tons of gold. 

 

But those imports are almost certainly underreported.   China's real holding in gold could be somewhere between 5,000 and 8,000 tons.  Maybe more. 

 

These reports can be viewed in relation to the US Treasury which reportedly holds about 8,200 tons of gold-but hasn't produced a public inventory since A.D. 1953 (sixty-one years ago). 

 

You can bet that if China announces the true size of its gold treasury within the next year, that size will probably be the largest (more than 8,200 tons) in the world. 

But, even if China currently holds only 3,000 tons of gold, if China continues to acquire more gold at last year's reported rate (1,500 tons), it will exceed the reported size of the US gold treasury within 3 more years.

 

*  More importantly, if China is acquiring gold at the rate of 1,500 tons per year, where's that gold coming from

 

A lot of people believe that some significant percentage of those 1,500 tons are being secretly sold to China by the US Treasury.  If so, the US Treasury no longer holds 8,200 tons of gold-and, according to some sources, may already be depleted. 

Thus, it's entirely possible that China already owns more gold than remains in the US Treasury.

 

So, suppose China announces how much gold it really has.  Suppose that sum is several thousand tons more than the 3,000 tons that's currently admitted. People will do the math and wonder where the extra several thousand tons came from.  Most of the rest of the world will provide reasonably honest declarations of how much gold they have.  If so, it won't be hard to figure that the only remaining source of what may be an "extra" several thousand tons of Chinese gold must've been the US Treasury. 

I.e., if China holds 5,000 tons more gold than most people currently suppose, it'll be pretty good evidence that the US Treasury holds 5,000 tons less than is currently claimed.

 

An announcement that China holds much more gold than is currently supposed might spawn a political furor in the US to compel the US Treasury to provide an honest accounting of how much gold really remains at Fort Knox and in the NY Federal Reserve vaults.  China could open its treasury to an independent audit to prove how much gold it has and thereby "shame" the US into also conducting an outside audit of the US Treasury's supply of gold.

 

If it turns out that the supply of US gold is several thousand tons less than currently claimed, that will be deemed a reduced global supply of gold available to markets.  That reduction in supply available to markets should drive the price of gold higher.

The simple truths are these:

 

1)    The market supply of physical gold is shrinking fast;

2)    The full impact of China's unprecedented purchases of gold has not yet fully affected global markets. 

 

A strong probability is this: 

 

Within the next year or two we could be looking back on gold priced at $1,900 per ounce as "the time when gold was cheap."

 

When China stops buying 1,000 or more tons of gold per year, it will signal that there's no more easy gold to be found and that the US Treasury is empty-and then the price of gold will rise.


General Motors announced four new recalls on Friday, bringing this year's total to 38. So far the company has recalled about 14.4 million cars, trucks and SUVs in the U.S. and 16.5 million in North America. Earlier this year GM passed its old U.S. full-year recall record of 10.75 million vehicles set in 2004. The latest recalls include: - Almost 512,000 Chevrolet Camaros from model years 2010 to 2014 to fix an ignition switch problem. GM says in rare cases, drivers who sit close to the steering column could bump the switchblade-style keys with their knees, causing the switches to slip out of the run position. This can cause engine stalling and loss of power steering and brakes. The problem has caused three crashes and four minor injuries, GM says.

 

Pound near 5-year high vs dollar as Bank of England hints rates may rise sooner than expected

LONDON (AP) - The pound jumped on Friday to reach its highest level against the dollar in nearly five years after the Bank of England's governor predicted an interest rate hike might come sooner than expected. The British currency rose to $1.6960 from $1.6830 the day before after Mark Carney said an interest rate rise from its current record low of 0.5 percent, "could happen sooner than markets currently expect." The last time the pound traded above $1.70 was in August 2009.

 

 

ON THE ECONOMY: U.S. retail sales rose for a fourth straight month in May, but the growth was slightly below economists' forecasts. The Commerce Department said consumer spending rose 0.3 percent last month, helped by a surge in auto demand, but shy of the 0.4 percent increase that economists expected.

 

South Africa's platinum sector has been put to striking miners.Three mining companies say they have reached an informal agreement with unons.The AMCU union is now putting the agreement to members to gauge their reaction to the proposed deal.The strike, which is the longest in South Africa's history, has been going on since late January.

The walkout by up to 80,000 platinum miners contributed to a first quarter contraction in the country's economy.The mining companies hit by the strike - Lonmin, Anglo American Platinum and Impala Platinum Holding - announced an informal agreement with the union on Thursday.

The AMCU has put the proposal to mine workers gathered at the Wonderkop stadium in Marikana. The union has given an update to its workers, and has said it will respond to the mining companies on Friday.The stoppage has affected around 40% of the global supply of platinum, a metal used in jewellery and in catalytic converters in cars.The announcement by the companies marks a major turnaround in the course of the strike.

Companies, unions and strikers have been in deadlock over the strike, risking the closure of shafts, and the loss of thousands of mine workers' jobs.

House passes bill to make small business tax break permanent; White House threatens veto

WASHINGTON (AP) - The House voted Thursday to make permanent a generous tax break that makes it easier for small businesses to buy new equipment and improve their property, part of an election-year showdown over a series of expired tax breaks worth billions. The tax break allows business owners to more quickly write off the costs of computers, machinery and other equipment, as well as improvements to retail property. It expired at the beginning of the year, along with more than 50 other temporary tax breaks that Congress routinely extends. The vote was 272 to 144 in favor of the bill. House Republicans said the bill is part of a broader effort to add more certainty to the tax code. "My bill provides predictability by making permanent a small business expensing measure that's been part of the tax code in some form since the 1950s," said Rep. Pat Tiberi, R-Ohio, the main sponsor of the bill.

 

 

What If the Fed Has Created a Bubble?

http://www.bloombergview.com/articles/2014-06-10/what-if-the-fed-has-created-a-bubble

 

By Mohamed A. El-Erian

 

Investors might be surprised to learn that they have a lot riding on something that they pay very little attention to: macro-prudential regulation, or what central banks and other government agencies do to reduce the risk of systemic financial disasters.

 

The aim of such regulation is to lower both the probability and potential costs of financial accidents. It does so by enhancing the resilience of the system, establishing circuit breakers to prevent problems in one area from contaminating others and, at the extreme, containing the detrimental impact on the broader economy when failures occur.

 

Macro-prudential regulation has been significantly enhanced in the aftermath of the global financial crisis. Authorities around the world have imposed higher and more intelligent capital requirements, required financial institutions to value their assets more conservatively and to hold more easy-to-sell assets, placed constraints on allowable risk-taking, insisted on more stable funding, and demanded greater provisions against bad loans.

 

The impact of the revamped regulation has gone far beyond the targeted banks and other financial companies. It has allowed central banks to be bolder in maintaining and evolving exceptional monetary and credit stimulus, which in turn has significantly bolstered the prices of stocks, bonds and other assets as a means of stimulating the economy.

 

The more confident central bankers are in their macro-prudential approach, the greater their willingness to persist with stimulus policies today that could involve a bigger risk of financial instability down the road -- a trade-off that has been noted recently by Minneapolis Fed President Narayana Kocherlakota, Boston Fed President Eric Rosengren and former Fed Governor Jeremy Stein.

 

Essentially, the Fed has been pushing stock and bond prices up to "bubblish" levels, in the expectation that they will inspire the kind of consumer spending, physical investments and hiring required to subsequently justify them. The hope is that the convergence will occur in the context of full employment and inflation near the Federal Reserve's target of 2 percent.

 

So far, though, the wedge between asset prices and economic reality remains large, as last week's juxtaposition of new stock-market highs and still-anemic wage-inflation data demonstrated.

 

The danger is that the economic recovery will ultimately fail to validate artificially high asset prices, leading to significant financial instability and adverse "spillback" for the economy. The more comfortable the authorities are in their ability to counter -- and, if necessary, contain -- such potential instability, the greater their appetite for maintaining the stimulus that markets so love.

 

To contact the writer of this article: Mohamed A. El-Erian at [email protected].

To contact the editor responsible for this article: Mark Whitehouse at [email protected].

 

 

"House Majority Leader Eric Cantor was defeated in the primary election. He spent $5 million on his primary campaign. Ladies and gentlemen, what is wrong with this country when you can no longer buy an election?" -David Letterman

 

America's middle class: Poorer than you think

By Tami Luhby  @Luhby

 

Average net worth vs. median net worth
 

 

 

NEW YORK (CNNMoney)

Rich Americans. That's our global reputation.

The numbers seem to back it up. Americans' average wealth tops $301,000 per adult, enough to rank us fourth on the latest Credit Suisse Global Wealth report.

 

But that figure doesn't tell you how the middle class American is doing.

Americans' median wealth is a mere $44,900 per adult -- half have more, half have less. That's only good enough for 19th place, below Japan, Canada, Australia and much of Western Europe.

 

"Americans tend to think of their middle class as being the richest in the world, but it turns out, in terms of wealth, they rank fairly low among major industrialized countries," said Edward Wolff, a New York University economics professor who studies net worth.

 

Why is there such a big difference between the two measures?

 

Super rich Americans skew average wealth upwards. The U.S. has 42% of the world's millionaires, and 49% of those with more than $50 million in assets.

This schism secures us the top rank in one net worth measure -- wealth inequality.

There's one main reason why the average Spaniard or Italian has more to his name than the typical American: real estate.

 

Home ownership rates are higher in many European countries than in the U.S., giving Joe European more assets to his name than his American counterpart. Plus, it's easier for Americans to borrow money, which eats away at their net worth, said Jim Davies, an economics professor at Western University in Ontario, Canada, and co-author of the Credit Suisse report.

 

Middle class Americans were also hurt greatly by the housing collapse at the end of the last decade. The median wealth of families was $77,300 in 2010, a nearly 40% drop from 2007, according to Federal Reserve statistics.

 

"Changes in home prices have a big effect on the wealth in the middle," Davies said.

Middle class Australians, by comparison, are leading the pack. The country's residents have the highest median net worth, coming in at $219,500. Australia also has low wealth inequality.

 

This is in part because Australians have a strong tradition of home ownership, though escalating prices have made it tougher for young adults to secure the Australian Dream. Those down under also have a mandatory retirement savings program, where they must squirrel away more than 9% of their income for their Golden Years, and they carry relatively low credit card and student loan debt.

 

Americans, meanwhile, are having trouble building wealth because wages have stagnated for more than a decade. Median household income was $51,017 in 2012, compared to $56,080 in 1999, according to the Census Bureau's most recent statistics.

 

Americans sound off on The Dream

 

There are many reasons why middle class incomes are suffering, including the decline of unions' power, the shift of jobs overseas and the increasing use of technology in the workplace, said Kenneth Thomas, professor of political science at University of Missouri, St. Louis.

 

Also, Americans have to pay more out of pocket for basics, such as health care and higher education, reducing their ability to build their nest egg.

 

"Middle class families haven't been able to save anything," Wolff said.

 

Treasury Secretary Lew says economy gaining traction but still facing major challenges

WASHINGTON (AP) - Treasury Secretary Jacob Lew said Wednesday that the economy should grow at much stronger rates the rest of this year as the country overcomes the impact of a harsh winter. But Lew said millions of Americans continue to struggle as unemployment remains too high and economic growth is too slow. "Evidence continues to mount that our economy is gaining traction," Lew said in a speech to the Economic Club of New York. "Nevertheless, we cannot escape the fact that millions of Americans continue to struggle and their pain reminds us that our work is not finished. ... For too many families this hardly feels like a recovery." In his remarks, which were distributed in Washington, Lew called for actions by the government and the private sector to boost hiring of the long-term unemployed and increase investment in productivity-enhancing equipment and critical infrastructure projects such as roads, railways and ports.

 

(AP:WASHINGTON) WASHINGTON (AP) - A senior Japanese official says the U.S. and Japan should reach a compromise in bilateral trade negotiations to help conclude a trans-Pacific free trade pact by year's end.Hiroyuki Ishige told a Washington think tank Tuesday that political leaders of both sides need to make bold decisions and recognize the strategic importance of finalizing the Trans-Pacific Partnership, or TPP.Ishige is chairman of the Japan External Trade Organization.U.S. is continuing negotiations with Japan in Washington this week on opening up its auto market. Japan is also under pressure to open up its agricultural sector.The U.S. and Japan are the largest players in the 12-nation TPP and resolving their differences is a major hurdle in finalizing the pact, whose members account for 40 percent of global economic output

 

Report: Nearly 200 Social Security judges rubber stamp disability claims, awarding billions

WASHINGTON (AP) - Amid complaints about lengthy waits for Social Security disability benefits, congressional investigators say nearly 200 administrative judges have been rubber-stamping claims, approving billions of dollars in lifetime payments from the cash-strapped program. Four of the judges defended their work at a combative congressional hearing Tuesday. They said they follow the law. "I've seen their ailments, I've seen their pain, right in front of me," Judge Gerald I. Krafsur of Kingsport Tennessee told the House Oversight Committee. Krafsur approved 99 percent of the cases he decided from 2005 to 2013, according to a new report by the Republican staff of the Oversight Committee. Lifetime benefits average about $300,000, according to the report, so Krafsur's cases will lead to nearly $1.8 billion in benefits.

 

WASHINGTON (AP) - Aiming to alleviate the burden of student loan debt, President Barack Obama expanded a program Monday that lets borrowers pay no more than 10 percent of their income every month, and threw his support behind more sweeping Senate legislation targeting the issue.

 

He put his pen to a presidential memorandum (no longer call executive order)  that he said could help an additional 5 million borrowers lower their monthly payments."I'm only here because this country gave me a chance through education," Obama said. "We are here today because we believe that in America, no hard-working young person should be priced out of a higher education.

 

"An existing repayment plan Obama announced in 2010 lets borrowers pay no more than 10 percent of their monthly income in payments, but is only available for those who started borrowing after October 2007. Obama's memo expands that program by making opening it to those who borrowed anytime in the past.

 

Obama also announced he is directing the government to renegotiate contracts with federal student loan servicers to encourage them to make it easier for borrowers to avoid defaulting on their loans.

 

"We need more. " To that end, Obama used the East Room appearance to endorse legislation that would let college graduates with heavy debts refinance their loans.

 

The bill's chief advocate, Democratic Sen. Elizabeth Warren of Massachusetts, joined a half-dozen other Democratic lawmakers as Obama urged Congress to pass the bill. "This should be a no-brainer," Obama said. The Senate is expected to debate the legislation next week, but it faces significant opposition from Republicans, who disagree with the Democrats' plan for how to pay for it.  The dual strategy - taking executive action while urging Congress to finish the job - has become Obama's signature playbook this year. Stymied by gridlock as Congress marches toward the midterm elections, he has repeatedly sought ways to go around Congress with modest steps that underscore his pitch from the bully pulpit for Congress to finish the job. Under an income-based repayment plan created by Congress, the maximum monthly payment is already set to drop from 15 percent of income to 10 percent in July 2014. The funniest thing about the deal..........In previous Obama budgets, the White House has predicted that making the plan retroactive would cost the federal government billions of dollars in the early years.

 

 Asked about the costs Monday, Education Secretary Arne Duncan said the administration won't know how much it will cost until they go through the rule-making process to put the expansion in place. "We actually don't know the costs yet," Duncan said. "We'll figure that out on the back end.

 

"This was not a thought-out policy solution, but another in a series of political events designed to distract from the difficulties facing college grads in the Obama economy," said Don Stewart, a spokesman for Senate Minority Leader Mitch McConnell, R-Ky.


Tyranny and control or freedom and achievement - which will it be for America - Obama has the answer

BY ADMIN. Laurie Roth, ON JUNE 11TH, 2014

 

Join to Laurie Roth each day on my national radio show from 7-10pm PAC at www.therothshow.com

 

America and her future are at a critical crossroads in history. Will we lead, achieve and serve or be pressed into the ash heap of fallen empires? Rome - Greece - Persia - USA - It kind of has a ring to it - kind of like a fossil 'rat pack' of fame and power gone wrong.

What is Obama's dream - Transform the U.S. to what?

Obama doesn't have a dream to destroy America and make her disappear but rather to enslave, control and manipulate the people and all our assets. All those who resist his agenda will be destroyed. His stated views written and spoken for his whole 'fake out' career have been to be the leader of an international movement and control the entire world with international laws. Step one is to seize and redistribute all wealth, make America a mass of amorality and crush real morality inspired by the God of the Holy Bible. Obama is a radical - Communist - Islamic and has always hated what the real America represents. Christians, conservatives and patriots must go, so must her spirit and real history of greatness.

Obama intends to make this transformation happen through clear and thought out methodology. He has never just had a dream or philosophy he operates from but detailed plans and international - Islamic support. He has always mysteriously had billions of dollars in backing. It is most clear that Obama, from birth was the chosen destroyer of America. Believe what you want, but the large sea of facts support this, from the massive millions spent to hide all Obama's documents - falsifying his birth records, use of false social security cards and hiding College records. Think about it a second. Have you ever heard of any U.S. President ever spending millions to hide every detail of his life from the people?

We see Obama's hostile and illegal actions daily perpetrated against our Constitution, laws, troops and the people. He intends to organize and enforce this tectonic shift through the Islamic lead caliphate- Islamic control of the entire world. We have watched Obama side with Islamic dictator after dictator - exposing again and again his real faith in Allah and Muhammad, not the Holy Bible and Jesus Christ. Think of the endless amount of corrupt and criminal dictators and terrorist groups he has boldly backed - Zelaya, Morsi, giving aid and comfort to the Taliban, employing Muslim Brotherhood members through out his staff on and on it goes. He always sides against the Christians and Jews and for Islamic radicals.

Scandals of destruction and corruption collect around Obama like snowflakes in a snowstorm. Now we get to wade through his complete violation and betrayal of our Vets with the Veterans Administration horror show and his illegal exchange of 5 top ranking Taliban commanders for a known Islamic radical and deserter. Naturally, Obama committed another crime by bypassing Congress and not giving them 30 days to respond. Now we shall see if Congress has already been bought and paid for or will stand for the law and the people. This latest crime of Obama is serious enough that if Congress will act, Obama could be facing huge prison time. Congress, who are you serving, Obama, his crimes and destruction of America or our Constitution, laws and the people who voted you in?

So, what is it to be people...tyranny and control or freedom and achievement? Obama has already decided but what will Congress, the 2014 and 2016 elections and 'the people decide?

Join me each day on my national radio show from 7-10pm PAC at www.therothshow.com

 

Empower Yourself - Whole Food Supplements - No Synthetics or GMOs - 100% Organic - www.thepowerherbs.com
HEALTH

DO AMERICANS HAVE APOCALYPSE FATIGUE?

 

The term apocalypse fatigue generally refers to people losing interest in environmental problems such as global warming. However I think that it is more than that. I think Americans are losing interest in political, economic and global policies due to the deception. I think the fatigue Americans are feeling is based in distrust which they feel towards the media and the government. We're told that manufacturing is down and job growth is down and overall economic growth is weak at just 0.1% for the first quarter of 2014. Market experts are blaming it on the winter weather. I admit the winter was harsh but is that all there is to a nation's market growth? Excuses will not explain the market projections not living up to expectations? It has been said that part of the plan those in power are wielding is to keep people guessing and off balance. Anxiety can make even the strongest person weary after a while. There are some big challenges ahead but let's take a look at how we can overcome this negative impact.

 

THIS JUST IN

I recently learned that the FDA has approved a company called Protein Sciences Corporation to make the first genetically modified flu vaccine called Flublok. This vaccine contains three different influenza viral strains AND uses recombinant DNA technology to include the baculo insect virus. They produce this vaccine in such a way to fast track the virus into the body. How did they do that? According to scientific reports they have used cells from the army worm caterpillar and genetically altered them to produce hem-agglutinin (a viral protein) which speeds up the uptake of the disease. Yes, this is a disease, not a medicine. Some scientists have criticized the development of GMO vaccines saying it is unsafe and unethical. Why did the FDA approve this? We're told the FDA approved this vaccine in 2013 to facilitate a rapid production of the vaccine and eliminate the need to culture the viruses on eggs thus eliminating the egg allergy problem. It is very possible that Flublok will be used as early as the fall of 2014. As far as I can tell there have been no clinical trials on Flublok just as there were no clinical trials for the Gardasil vaccine.

 

RECREATING THE DEADLY PAST

I also came across a disturbing report that scientists at the University of Wisconsin-Madison are recreating the deadly 1918 Spanish flu virus. Professor Yoshihiro Kawaoka and his team have taken the avian flu virus found in wild ducks and experimented on laboratory ferrets in an attempt to reproduce the Spanish influenza virus. You may be asking why would scientists want to revive such a deadly virus which killed 50 million people in 1918? Actually, many scientists and doctors asked the same thing stating that the research would be too dangerous and foolhardy. And that attempting to revive the Spanish flu from other avian flu strains for the sake of experimentation would not justify the catastrophic risk if the engineered virus escaped to cause a pandemic. So, what is behind professor Kawaoka's logic for doing this? First off he dismisses the critics and defends his research as necessary in order to develop new flu vaccines to minimize the risk of a pandemic. Apparently professor Kawaoka says that avian flu viruses are easily mutated to adapt to humans and his research will support these mechanisms to identify which key mutations are used (known as reverse genetics). It is reported that he has 97% of the Spanish flu virus reconstructed and nearly identical to the Spanish flu strain recovered from corpses of the 1918 pandemic. Sounds like the old adage; create the problem to sell you the solution. This dangerous research was carried out in a lab in Madison Wisconsin and I doubt Americans living nearby knew this was happening. How many more labs in the US are conducting biological experiments that would kill many and are they secure?

 

"A lock on the door is the only specified requirement. There is no explicit requirement for guards, bio-identity checks, or video monitoring such as a 7-Eleven might have. The rules require very strict paperwork but no real physical security." Dr. Richard Ebright, Virologist Rutgers University

 

"Labs which experiment on dangerous pathogens are funded by the U.S. government and must follow specific rules to keep the microbes from escaping, but those rules are not enforceable for researchers working with private funds. It is all subject to interpretation I don't have a lot of confidence in our biosafety right now." U.S. National Science Advisory Board for Biosecurity (monitors research that might pose a bioterrorism threat)

 

2011 of Level 4 Bio Labs in US http://www.fas.org/programs/bio/biosafetylevels.html

 

TOO BIZARRE

What is happening in the halls of science? It is normally rare for disease to cross over from animals to humans but science seems intrigued with creating new diseases via zoonotic transfer. We have large cats (domestic and wild) contracting canine distemper and we have the MERS virus infecting humans and they think is coming from camels. We have the SARS virus, the pig flu, the avian flu and the bat flu. What could be next? It is estimated the science is discovering thirty new pathogens annually. Are they discovering them or creating them?

 

SIGNS OF SLOWING

America is a nation which currently imports more goods than it exports creating a $471 billion deficit. America may be exporting billions however we import even more. The size of America's manufacturing sector has diminished. According to the 2014 Congressional Research Service Report on US Manufacturing, China is the leader and is where America once was. Manufacturing in America had declined by 30% since 2002. They report a huge drop in manufacturing employment between 2002 and 2010 (Source: www.fas.org/sgp/crs/misc/R42135.pdf). Some economic experts go as far as to say that manufacturing in the US is dead and "nothing is made in America anymore."  Due to high taxes and cost of labor and laws the manufacturing jobs and the production and service are outsourced to China, Mexico and Korea. However, there are pockets of manufacturing development scattered across the US, so the US is not done yet.

 

GET IT WHILE YOU CAN

I heard this week that Russia was replacing the USD with the Euro. I don't know how accurate the report was but as a business owner I've noticed some hiccups lately with regards to the distribution highways. It seems to be getting harder to get some needed supplies. I've talked with other business owners and they agree that things have slowed down a lot. What concerns me is people could get caught not having the necessary things on hand when a pandemic does strike. We can expect that the deadly pathogens the scientists are playing with in the labs across America will eventually escape the lab. According to a resident of San Antonio Texas, they have five bioweapon labs on the outskirt of the city. These facilities don't show up on the maps. I anticipate reports of some deadly pathogen, perhaps the Spanish flu, to bring on the need for a massive GM flu inoculation campaign. You can roll up your sleeve if you want but I personally will strengthen my immune system instead. Remember, the job of those in power is to keep you off balance, guessing and feed your apocalypse fatigue. If there is a revolution or a pandemic you are going to need first aid and professional strength herbs to support and strengthen you.  Cleansing and nourishing your body now will go a long way in the success of your resistance. Call Apothecary Herbs now to order your pandemic supplies, cleanses and immune support formulas and fast track toxins out instead of into your body. Call toll free 866-229-3663, International 704-885-0277 http://www.thepowerherbs.com, where your made in America healthcare options just became endless.

 

 

  

Need more nutrition & energy? 
Add Body Food to your order for more savings.

 

 

If you are serious about herbs, you need Apothecary Herbs. Guaranteed.    

 

Click Here

 

Sources:

http://www.collective-evolution.com/2013/07/12/fda-approves-first-gmo-flu-vaccine-expected-on-market-in-2014/

http://w http://www.projectcensored.org/16-human-genome-project-opens-the-door-to-ethnically-specific-bioweapons/ww.reuters.com/article/2012/02/15/us-health-biosecurity-idUSTRE81E0R420120215

http://useconomy.about.com/od/tradepolicy/p/Imports-Exports-Components.htm

http://www.forbes.com/sites/joelkotkin/2013/05/15/americas-manufacturing-boomtowns/

 

COMING UP ON HERB TALK LIVE

Herbalist Wendy Wilson on Herb Talk Live

Saturday morning show:

7 am EST on GCN

6/14/14 Dr. Rebecca Carley

6/21/14 John Monroe natural solutions to vision problems

Weekday show:

7 pm EST on AVR

6/17/14 Dr. Rebecca Carley

6/24/14 John Monroe natural solutions to vision problems

Shortwave show 8 pm EST WWCR 4840

Go to http://www.thepowerherbs.com/archive.html 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.

 

NATURAL VISION WORKSHOP- Sign Up Now!

When: Saturday July 26, 2014 10:00 am to 6:00 pm EST

Where: Charlotte, NC at the Embassy Suites Hotel 4800 S. Tryon St

Hosted by: John Monroe from Dr. Banker's Group

Contact: John Monroe 303-494-4532 www.drbanker.com

 

THE NEW HMO

Apothecary Herbs is introducing their version of the HMO (Herb Medicine Options). Unlike insurance companies, our HMO is not about drugs, co-pays and deductibles. Our HMO is about a healthy lifestyle without drug dependency. Our HMO members are savvy and can often take advantage of the HMO discounts. There are no member fees and you can simply request to sign up by emailing or calling Apothecary Herbs [email protected] or 866-229-3663, International 704-885-0277.  Current members can take advantage of discounts. I like discount coupons but they tend to expire. HMO members you can use your discount when they want.   

HMO1 offers FREE ground ship on orders over $75 (US orders) HMO2 offers 15% off orders over $100.00   HMO3 offers $15.00 off plus FREE ground ship on orders over $250.00 (US orders) *These discounts will be active for about 3 months and will change. Members will also receive special offers on selective items in our store.

 

NEW - HERBAL DETECTIVE

People have lots of questions about herbs and often ask, "What herb can I use for...? Now you can find out with a phone call or click of a mouse with our Herbal Detective. Visit http://www.thepowerherbs.com and click on the Herbal Detective banner or call toll free 866-229-3663.

 

"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 http://www.thepowerherbs.com/herb/Natural-Pet-Food.html

 

MORE HERB SECRETS IN THE POWER HERBS e-BOOK. By 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. Go to http://www.thepowerherbs.com/Books-And-Newsletters/The-Power-Herbs-e-Book-cleansing-immune-boosting.html and click on Books. 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.

 

NEW DANDELION ROOT LIQUID

Try Dandelion Root Tincture for inflammation, blood purification, respiratory infections, digestion and cancer protection at http://www.thepowerherbs.com/herb/Dandelion-Inflammation-Blood-Purifier.html

 

HERB KITS EXTEND YOUR FIRST AID KITS

Do you have your Pandemic Kit yet? Here is what folks are saying about the 100% organic Pandemic Kit made by Apothecary Herbs. "I have this kit and recommend everyone have at least one on hand (or more depending on family size) for a pandemic." Rebecca Carley, MD, Hickory, NC and "I have one and glad I do; just in case. I like the long shelf life." Melody Cedarstrom, Port Matilda, PA (more customer feedback at http://www.thepowerherbs.com) or call 866-229-3663 to order your kit today.

 

PURE ZINC ENERGY

Pure energy is organic and instantly absorbed - transporting nutrition to every cell in your body. It is a super food for the body to repair, build and fortify itself. Where do you get it? It's called Body Foundation Food Mix and is at Apothecary Herbs 866-229-3663, International 704-885-0277 http://www.thepowerherbs.com. This pure energy food source is so efficient; you won't feel hungry between meals and can safely lose weight.

 

DETOX PRODUCTS

Apothecary Herbs has released a new product called Liver Detox Tea. You can layer this tea with Milk Thistle Tincture for a gentle yet effective liver cleanse. This is a nice option if you can't do the Liver/Gall Bladder Flush using olive oil. You will find this new product under Herbal Teas at http://www.thepowerherbs.com. Also new is the Liver & Gall Bladder Tincture with dandelion root for more anticancer protection. This formula is available in 1 oz, 2 oz and 4 oz sizes. You will find this item under Organ Body Cleanses at http://www.thepowerherbs.com. You can layer this tincture with the Liver Detox Tea and be well!

 

BE PREPARED

Being prepared is never a waste of time. Get your own organic garden growing and stock as much healthy foodstuffs as you can. You'll also need backup medicine but the over-the-counter and prescription medicines have a limited shelf life of two years or less. However, your organic medicines have a ten year shelf life without side effects. Call the folks at Apothecary Herbs for their Natural Medicine Starter Stock-up Package or make sure you get one of their many herb kits for boosting immune system and protecting you from viruses, bacteria and other pathogens. Call Apothecary Herbs 866-229-3663, International 704-885-0277 online http://www.thepowerherbs.com, where your healthcare options just became endless.

 

ALLERGY RELIEF

If you suffer from allergies (sneezing, itchy watery eyes, stuffy or runny nose, sinus pressure or sinus infections) try the Echinacea Deluxe formula and Herbal Eyewash both around $20.00 from Apothecary Herbs. Call now toll free 866-229-3663 http://www.thepowerherbs.com.

 

APOTHECARY HERBS VITAMIN VAULT - STOCK UP AND SAVE!

You already know that you can save on the half and full case discounts in the Vitamin Vault area at http://www.thepowerherbs.com. Apothecary Herbs has added a new item called the Natural Medicine Starter Stock-up Package. This package is designed for those preparing for their medical future and contains immune boosting, pain & inflammation, organ cleanses, vitamin, mineral, amino acid and protein products plus a Pandemic Kit and it comes with a savings. Visit http://www.thepowerherbs.com or call toll free to order your Starter Stock-up Package 866-229-3663, International 704-885-0277.  

 

MALE & FEMALE ORGAN CLEANSES KITS - Don't give disease a foothold. You will have the power to cleanse the bowel, urinary, liver, gall bladder and blood system with this cleanse package. For added cleansing, ask about how you can upgrade your order to include the prostate cleanse for men or the Kidney/Bladder cleanse for females.  Go to http://www.thepowerherbs.com or call their 24-hour live customer service line 866-229-3663, International 704-885-0277.

 

STARTER KIT & ONE-YEAR SUPPLY OF HERBAL MEDICNE (shelf life 10 to 15 years)

 

See Apothecary Herbs One Year Supply of Herbal Medicine at http://www.thepowerherbs.com or call 866-229-3663, 704-885-0277. Call for a customized year supply or to set up installment payment for this package.

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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