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Edited by Alfred Adask
Friday, June 27th A.D. 2014

Between Friday, June 20th, A.D. 2014 and Friday, June 27th, A.D. 2014, the bid prices for:

Gold rose 0.0 % from $1,314.70 to $1,315.10

Silver fell 0.0 % from $20.88 to $20.87

Platinum rose 1.5 % from $1,451 to $1,473

Palladium rose 2.3 % from $819 to $838

DJIA fell 0.6 % from 16,947.08 to 16,851.84

NASDAQ rose 0.7 % from 4,368.04 to 4,397.93

NYSE fell 0.4 % from 11,018.10 to 10,974.40

US Dollar Index fell 0.4 % from 80.33 to 80.02

Crude Oil fell 1.4 % from $107.30 to $105.74


"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

SGE (Shanghai Gold Exchange)


by Alfred Adask



*  First, I suggest that you get in the habit of recognizing the acronym "SGE" as meaning "Shanghai Gold Exchange".  If you're interested in gold, you're going to read a lot about the "SGE" over the next several years.


*  Second, reports that,


"China has approached foreign banks and gold producers to participate in a global gold exchange in Shanghai, as the world's top producer and importer of gold seeks greater influence over pricing and the global gold market.

"The Shanghai Gold Exchange [SGE]got the go ahead from the central bank last week to launch a global trading platform in the city's pilot free trade [international] zone. SGE is looking to launch physical contracts of gold, silver and platinumgroup metals denominated in Chinese yuanon the international exchange."


If the sale of physical gold on the SGE is denominated in Chinese yuan, the world's interest in the yuan will grow. 


As the world begins to turn to the yuan to buy physical gold, it will simultaneously turn away from the fiat dollar.  The rising influence of the SGE will tend increased the perceived value of the yuan and diminish the dollar's perceived value by increasing the rate of inflation.


*  Third, according to Reuters,


 "China, the world's biggest buyer of raw materials from copper to coal, is pushing hard to establish pricing benchmarksfor a number of commodities."


The significance of the previous quote is not that China is seeking to establish "benchmarks," per se, but that China is seeking to establish benchmarks denominated in Chinese yuan.  Insofar as the global prices of copper, gold and other commodities are denominated in Chinese yuan, the yuan will become more valuable and the fiat dollar less.


More, insofar as the sale of physical gold becomes concentrated in the SGE, the yuan will become implicitly "backed" by physical gold much like the petro-dollar was implicitly backed by the world's sales of crude oil. 


I.e., from A.D. 1973 to the early 2000s, if you wanted to purchase crude oil on the international market, you had to first have fiat dollars to make the purchase.  The resulting global demand for fiat dollars gave those dollars a perceived (but illusory) value. 


Similarly, at least relative to the SGE, if you want physical gold, you may soon have to first acquire Chinese yuan.  Insofar as you need yuan to purchase physical gold, the yuan will become implicitly backed by physical gold.


*  Fourth, referring to the SGE, Reuters wrote:


"Gold, along with oil, could be among the first to be opened up to foreign players. The free trade zone in Shanghai is set to see international energy trading by hosting the country's first crude oil futures."


Dayahm!!  If the SGE is seeking to sell not only physical gold (which price is currently denominated in fiat dollars) but also crude oil (which price is currently denominated in fiat-petro-dollars), the SGE will constitute a full-frontal attack on the fiat-petro-dollar.  Using yuan to purchase crude oil on the international market is evidence of all-out currency war.


Since the fiat dollar's perceived value is primarily based on whatever remains of its former stature as the world's only "petro-currency," it's possible that the real objective behind the SGE is not to sell gold for yuan so much as to sell crude oil for yuan and thereby cut the legs out from under the petro-dollar.  If the petro-dollar depreciates, the US economy will be impaired by greater inflation-perhaps even hyper-inflation.


In any case, the SGE may not only cause the prices of physical gold and physical silver to rise to but also cause the global price of crude oil to rise over the next twelve months.


Fifth, if the SGE becomes the world's primary market for physical gold, whatever physical gold is left in the COMEX vaults and other US commodity markets should quickly flee from the relatively low prices for "paper" gold in the US and to the higher prices for physical gold at the SGE. 


Implication?  If the SGE goes fully "on line" in the 4th quarter of A.D. 2014, US commodity markets might run out of physical gold as early as that quarter and perhaps no later than the 1st or 2nd quarter of A.D. 2015. 


All of which suggests that by this time next year:  1) the price of paper gold will fall noticeably; 2) the price of physical gold will rise noticeably; 3) there may be some initial confusion as the prices of physical gold and paper gold diverge-but that confusion shouldn't last long; 4) the American gold-price rigging scheme (which depends public confidence in paper gold) will collapse; 5) the prices of physical gold and silver (freed from institutionalized price manipulation) will begin to rise dramatically.


*  Sixth, and "coincidentally," the previous predictions should begin within one or two quarters after the London Silver Fix ends this August 14th.  


There are plans afoot to replace the current London Silver Fix with some "new and improved" "silver fix" run by new players.  However, given the world's increasing scrutiny of the world's markets for fixing and even manipulating the prices of gold and silver-and given the world's increasing inclination to punish manipulation with stiff fines or even prison sentences-I doubt that any coalition of bankers really wants to assume control of, and criminal liability for, running the next "silver fix" after mid-August. 


More, there are currently seven different proposals being considered for the "new-and-improved" silver fix.  That means that there are seven different "gangs" competing to become the new "silver fix" boss.  Seven competitors means there's no consensus at the current silver fix authority and not even much control.  I.e., if the current London Silver Fix had any remaining authority, there'd be only one nominee to assume control-not seven contenders. 


Once one of the seven contenders wins the "silver fix sweepstakes," we can expect the six losing dwarfs to be jealous, resentful and divisive.  Thus, it's unlikely that the next "silver fix" will function as smoothly or with the same degree of loyalty that existed under the previous 117-year-old London Silver Fix institution.  You can't replace an important institution that's been established for over a century with a new coalition of two or three corporations and expect everything to run smoothly.


More importantly, the reason that the existing silver fix operators are resigning is that they now face serious civil and possibly criminal liabilities for previously manipulating the price of silver.    Silver price "fixing" (manipulation) has been an established practice for most of a century.  I assume that manipulation depended on conduct that is now deemed to be criminal.  If so, the new silver fix won't simply be operated by a new coalition of banks-it will have to run based on a completely new set operating principles that no longer include the criminal manipulation of prices that previously dominated the London Silver Fix for over 100 years.


That means that the silver fix changeover won't merely give us new controllers, it will give us new controllers that can't use criminal procedures to implement that control.  The silver fix is not merely changing its bosses, it's being completely reinvented to establish new, untested, and non-criminal procedures for controlling the price of silver.

What we're seeing in the silver fix changeover is something like the Boy Scouts being appointed to run a former Mafia cocaine distribution ring.  The Boy Scouts will expected to keep on distributing cocaine-but to do so without breaking any laws. 


It can't be done.   You can't distribute an illegal drug without breaking laws.  A cocaine distribution ring that's forced to obey the laws will quickly go out of business and collapse.


Similarly, I doubt that the next silver fix will function effectively if it's prevented from engaging in criminal manipulation of the market price for silver.  Without the use the same criminal procedures that were established, fine-tuned and accepted for over a century, the new silver fix won't be able to effectively manipulate and control the price of silver. 


That's probably why there are seven different proposals for taking over the silver fix.  It's not just seven different "gangs".  It's evidence of seven different sets of untested procedures being proposed to replace a 117-year-old London Silver Fix. 


If the next silver fix can't easily engage in criminal activity, it won't be able to manipulate the price of silver.  The next silver fix might be able to hold together for another six months or even a year, but I suspect that the next "silver fix" is already a dead man walking.  The prices of physical silver and physical gold may soon be found on free (unmanipulated) markets like the SGE rather than COMEX or the London Bullion Market Association.  Once free (or at least "more-free") markets replace institutionalized manipulation, prices may become more volatile, but should also generally push towards record highs. 


In fact, I doubt that there'll be any agreement on establishing a new silver fix by August 15th.   Even if some agreement is reached, I doubt that it will survive for more than six to twelve months. 


*  Even if a new-and-improved "silver fix" begins on August 15th, the SGE won't only sell physical gold, but will also sell physical silver, physical platinum and perhaps physical palladium. 


Thus, regardless of whether a new "silver fix" is created by August 15th, that "silver fix" will only control the price of "paper-silver" (denominated in fiat dollars or fiat pounds) for just a few months before the SGE begins to sell physical silver for Chinese yuan.  The "silver fix" and the SGE will be in indirect competition.   One will set the price of paper-silver, the other will set the price of physical-silver.


If so, it's likely that the prices of paper-silver (declared on the new "silver fix") will be lower than the price of physical silver found on the SGE.  If the SGE pays higher prices for physical silver, much of the world's supply of physical silver should migrate to the SGE.  The lower-priced, paper "silver fix" could soon become irrelevant-perhaps as soon as the fourth quarter of this year.  (Who will really care what the prices of paper-gold and paper-silver may be on COMEX, once there's a legitimate market for establishing the prices of physical gold and silver at SGE?)


As the influence of the "silver fix" diminishes, the price of physical silver should rise even faster while the price of paper silver falls.  The price of physical gold will be set in yuan at the SGE.  The new silver fix, if it survives, will only translate those prices from yuan to fiat dollars or English pounds.  If the SGE provides a substantial market for physical metals, the silver fix for paper-silver will become irrelevant.


As the prices of physical gold and silver become predominant , the fiat dollar used to price paper gold and paper silver will become less needed and therefore less valuable.  Again, I'm not predicting that the onset of the SGE will trigger the collapse the fiat dollar, but it will add another straw to that camel's back.  I expect the  SGE to contribute to a 2% or 3% increase in inflation in A.D. 2015.


Insofar as the SGE contributes to dollar inflation, the SGE should not only increase the prices of physical gold and silver, but should also indirectly cause an increase in the prices of food and petroleum products denominated in fiat dollars.


* I speculated in an earlier article ("When China Stop Buying Gold") that, right now, while China is acquiring hundreds of tons of gold (much of which may have been secretly purchased from the US Treasury), China wants low prices for gold so as to more easily acquire more tonnage.  But once China determines that it's purchased virtually all of the world's "cheap" gold (and the US Treasury's supply of gold is depleted), China will no longer have an interest in suppressing the price of gold. 


If the world's supply of cheap gold is exhausted and massive purchases of gold are no longer possible, China's interests may shift from suppressing the price of gold to causing that price to rise.  I.e., if China holds the world's biggest treasury of gold (some suspect China may already have 10,000 to 20,000 tons), like anyone else, China would rather have its gold valued at $5,000 per ounce than at $1,300. 


Thus, we can expect the SGE to raise the price of gold, raise the world's value of the yuan, and inflate/reduce the value of the fiat dollar.


If the previous speculation about China secretly buying the US Treasury's supply of gold were true, the SGE's establishment as a global market may signal:  1) the US Treasury's supply of gold is depleted; 2)  China now exerts significant influence over the price of physical gold; 3) the yuan is at least a viable contender for the role of "world reserve currency"; and 4) the fiat dollar's value is falling.


*  Reuters described the SGE:


"State-backed SGE has asked [international] bullion banks such as HSBC , Australia and New Zealand Banking Group (ANZ), Standard Bank, Standard Chartered and Bank of Nova Scotia to take part in the global trading platform . . . .

"China wants to have more voice in gold prices . . . . The international exchange is the first step towards gaining a say in gold pricing." 

"If you don't allow foreign players to participate in your market actively, or do not push Chinese financial institutions to participate in the international market, then China's strong gold demand is only a number, not a power . . . ."


HSBC and Standard Bank declined to comment, while the other banks and SGE were not immediately available for comment.


If China opens the SGE to international investors, but the world's major bullion banks decline to participate, the SGE might not get off to a flying start. 

No matter. 


Even if the SGE has only one or two small bullion banks participating and those two bullion banks are paying higher prices for physical gold than are paid at COMEX, precious metals will begin to flow to those two small banks and they'll become fabulously wealthy. 


Once the SGE opens as an international market for physical gold, much of the world's physical gold will flow towards the SGE to take advantage of higher prices.  Any bullion bank that refuses to participate in the SGE will become irrelevant and insolvent.  The attractive force of the SGE for physical gold should be every bit as irresistible as the repulsive forces of COMEX paper gold. 


Once the SGE opens its international doors, the institutions of paper-gold and paper-silver seen on American and London precious metals markets will begin to wither.   The manipulations of the prices of physical gold and physical silver previously achieved by means of paper-gold and paper-silver should begin to disappear. 


If the "silver fix" dies (or at least withers) in the third quarter of this year, and the SGE opens internationally in the 4th quarter, by this time next year, the prices of physical gold and physical silver could be 30% higher, maybe more, than they are today. 


Between the dying silver fix and the full onset of the SGE, we may be on the verge of one of history's most explosive year-to-year increases in the prices of physical gold and silver.

News in Brief


 Daimler, Renault-Nissan to build $1.4 billion Mexico plant for compact cars

MEXICO CITY (AP) - Automakers Daimler and Renault-Nissan say they will build a $1.36 billion plant to manufacture Infiniti and Mercedes-Benz brand compact vehicles.The companies announced Friday that construction on the plant would begin in 2015 in the northern state of Aguascalientes.They called it the most ambitious project to date for the joint venture the firms launched in 2010.


They said it would produce as many as 300,000 cars a year, with Infiniti production beginning in 2017 and Mercedes in 2018.The plant is expected to employ 5,700 people. Automakers are increasingly moving car manufacturing to Mexico due to its access to the U.S., low labor costs and free-trade deals with more than 30 countries.



Ukraine signs economic and political pact with EU

By JOHN-THOR DAHLBURG       (AP:BRUSSELS) BRUSSELS (AP) - Ukraine's new president signed a sweeping economic and political pact with the European Union on Friday, pushing his troubled country closer into a European orbit over the protests of Russia, which warned of possible trade sanctions. "What a great day!" a beaming President Petro Poroshenko said in Brussels. "Maybe the most important day for my country after independence" from the Soviet Union in 1991.

Moscow is loath to see its historic influence wane in its strategic neighbor, which it considers the birthplace of Russian statehood and of Russian Orthodox Christianity.


"There will undoubtedly be serious consequences for Ukraine and Moldova's signing," Russian Deputy Foreign Minister Grigory Karasin said.


European Union leaders decided not to immediately impose new sanctions on Russia for destabilizing eastern Ukraine. But in a statement, they warned that new sanctions have been prepared so they could be levied "without delay"


Agreements signed Friday let businesses in the former Soviet republics of Ukraine, Moldova and Georgia trade freely in any of the EU's nations without tariffs or restrictions as long as their goods and practices meet EU standards.


 Likewise, goods and services from the EU will be sold more easily and cheaply in the three countries.

Amanda Paul, a policy analyst at the Brussels-based think tank European Policy Center, said Russia has levers to inflict serious economic pain on Ukraine, Moldova and Georgia through trade restrictions, cuts in energy supplies or the deportation of migrant workers from those countries.



China Gold Scheme....Really??????

Reports Thursday said China authorities have uncovered $15.2 billion illegal gold- financing scheme that dates back at least two years. That also put some downside price pressure on the yellow metal Thursday, due to the immediate uncertainty of the situation.

Chinese officials recently broke up a big, illegal copper financing operation in China, which sunk the copper market for a short time.

The civil war in Iraq is still an issue for the market place but it has at least temporarily moved off the front burner. Don't be surprised in the coming days to see this matter move back into the spotlight of the market place and once again significantly impact some market prices.


Consumer Spending

Consumer spending, which accounts for the bulk of U.S. economic activity, rose just 0.2 percent after no gain in April.


That suggests the recovery from a poor first quarter will likely not be very strong, analyst said.


The impact was tempered by a separate report that showed the number of people in the U.S. seeking unemployment benefits dropped last week, a sign the labor market is still strengthening.



More Evidence

The U.S. Labor Department says it's giving Michigan $6.175 million under a national program to help laid-off workers train for jobs in high-demand industries.


The department said Thursday that it's making about $155 million in grants to 32 states and the Cherokee tribe (WHAT..the Cherokee tribe...don't they have any casinos???) to start or expand job-training programs for laid-off workers. The department says that Michigan is among 12 states that are getting the maximum available grant of $6.175 million under the Job-Driven National Emergency Grant program.


The government says the grants will go to "create or expand employer partnerships that provide opportunities for on-the-job training" such as apprenticeships or other training that results in "an industry-recognized credential."




The Delaware Senate they decided to on a bailout for three of their gambling casinos to the tune of $10 million.

The Senate voted 14-5 to pass legislation to help the casinos, which say they are struggling with increased competition from neighboring states and have to share too much of their gambling revenue with the state.  This is what the casinos are whining about.

The change would take effect in July 2015, at an estimated cost to the state of about $10 million annually.  To help the casinos until then, lawmakers cobbled together a similar amount of taxpayer money, mostly from unspent funds that are supposed to be used for economic development projects.

A third of the money would come from jobs infrastructure funds earmarked for a Kent County sports complex that has been delayed.

Another $1 million would come from unallocated jobs infrastructure money, and $5.6 million that was left unspent from a casino bailout package last year.  "I support this legislation because I think it's going to save jobs," said Sen. Colin Bonini, R-Dover. "The bottom line is that these are three of our largest private-sector employers." 

The change would cost the state's general fund about $10 million a year. The commission also proposed eliminating the annual $3 million table games fee paid by the casinos and reducing the state's share of table game revenue from 29.4 percent to 15 percent, at an estimated annual cost to taxpayers of $7.2 million.The commission's recommendations formed the basis of the bailout legislation, which has since been pared back because lawmakers couldn't find the needed money or support.The revised bill calls for the state to help pay vendor costs for slot machines, but proposals to eliminate the table games fee and reduce the state's share of table game revenue have been dropped.



And our economy was doing so well......

The U.S. economy contracted at a much steeper pace than previously estimated in the first quarter, but there are indications that growth has since rebounded strongly.

The Commerce Department said on Wednesday gross domestic product fell at a 2.9 percent annual rate, the economy's worst performance in five years, instead of the 1.0 percent pace it had reported last month.

While the economy's woes have been largely blamed on an unusually cold winter, the magnitude of the revisions suggest other factors at play beyond the weather. Growth has now been revised down by a total of 3.0 percentage points since the government's first estimate was published in April, which had the economy expanding at a 0.1 percent rate.

The difference between the second and third estimates was the largest on records going back to 1976, the Commerce Department said. Economists had expected growth to be revised to show it contracting at a 1.7 percent rate.

The latest revisions reflect a weaker pace of healthcare spending than previously assumed, which caused a downgrading of the consumer spending estimate.


Major privacy ruling, Supreme Court tells police: 'Get a warrant' before searching cellphones

WASHINGTON (AP) - In an emphatic defense of privacy in the digital age, a unanimous Supreme Court ruled Wednesday that police generally may not search the cellphones of people they arrest without first getting search warrants. Cellphones are unlike anything else police may find on someone they arrest, Chief Justice John Roberts wrote for the court. They are "not just another technological convenience," he said, but ubiquitous, increasingly powerful computers that contain vast quantities of personal, sensitive information. "With all they contain and all they may reveal, they hold for many Americans the privacies of life," Roberts declared. So the message to police about what they should do before rummaging through a cellphone's contents following an arrest is simple: "Get a warrant." The chief justice acknowledged that barring searches would affect law enforcement, but he said: "Privacy comes at a cost."



Home prices jumped nearly 11% in April , and are now up more than 22% from the bottom three years ago.

Still, they are 18% below the peak set in July 2006, according to S&P/Case-Shiller. And price gains are slowing.


"Although home prices rose in April, the annual gains weakened," says David Blitzer of S&P Dow Jones Indices. "Last year some Sunbelt cities were seeing year-over-year numbers close to 30%, now all are below 20%."

Low mortgage rates, which the Federal Reserve is expected to keep reined in through mid-2015, and gains in the job market should continue to help the housing market, according to Blitzer.

But don't get too comfortable.

Home sales are being supported by all-cash buys and low supply, said Blitzer. And he says qualifying for a mortgage is still a problem.

"First time home buyers are not back in force," he said.


The pace of U.S home construction slipped in May with many Americans still struggling to afford new houses.


Builders started work at a seasonally adjusted annual rate on 1.01 million homes last month, the Commerce Department said Tuesday.

That was down 6.5 percent from 1.07 million in April.

Construction firms began work on fewer single-family houses, condominiums and apartments last month.

Home construction has struggled to gain much traction this year, limiting its ability to contribute as much to broader economic growth as it has in the past.


May housing starts have risen 9.4 percent over the past 12 months. But apartments account for most of the gains, suggesting that more Americans will be renting instead of owning homes.



Despite political turmoil, investors are calm. Too  calm, perhaps. Some numbers, at a glance

By The Associated Press

Given all the armed uprisings, coups and mass protests around the world these days, you'd think investors would be panicking.

But most appear untroubled, content with their holdings and loath to make any big moves.

Some experts warn that, as with the weather, calm often precedes a storm.

Among the signs of tranquility:- LITTLE TRADING: So far this year, investors have traded an average 3.4 billion shares each day on the New York Stock Exchange, 38 percent less than they did in the same period four years ago.-


SMALL PRICE MOVES: The Standard and Poor's 500 index has risen or fallen less than 1 percent for 46 days in a row, a rare state of stasis. Stocks haven't moved so little for so long since 1995, says Howard Silverblatt, senior index analyst for S&P Indices.-


 CALM AHEAD, MAYBE: Meanwhile, the so-called Vix index, which tracks expected price swings in the S&P 500, suggests things could remain sleepy for a while yet. That measure, dubbed the "fear index" by traders, has been hovering around 11 recently, about half its 10-year average. Last week, it dropped to 10.6, the lowest since 2007, when stocks began a 2 ˝-year drop that erased half of their value.-


 NO CORRECTION: Professional stock investors say it's healthy for a bull market to occasionally have a "correction," or a drop of 10 percent or so. The S&P 500 hasn't had one for nearly three years ago, twice as long as the average back to World War II.


Sales of previously owned U.S. homes

AP:WASHINGTON) WASHINGTON (AP) - Sales of previously owned U.S. homes posted the best monthly gain in nearly three years in May, providing hope that housing is beginning to regain momentum lost over the past year.The National Association of Realtors reported Monday that sales of existing homes increased 4.9 percent last month to a seasonally adjusted annual rate of 4.89 million homes. The monthly gain was the fastest since August 2011, but even with the increase, sales are still 5 percent below the pace in May 2013.

The pace of home sales is below the 5.1 million homes sold in 2013 and off the pace of 5.5 million annual sales that would be consistent with a healthy housing market.

DETROIT (WWJ) - Could the United Nations soon help the Detroit Water and Sewerage Department provide the service to struggling customers?

Water department spokeswoman Curtrise Garner says it's a possibility - but for now, the water bills must be paid.


Garner said the reality is that nearly half of Detroit Water and Sewerage customers can't pay their bills; and that has led activists to lobby the UN to step up and take action.


"If they do contact us we are willing to speak with them," she said, adding "We owe it to the customers that are paying to collect from those that aren't. Somebody has to pay for the water."


According to the Free Press, the average Detroit water bill is now $75 a month - much higher than the nation's average rate of about $40.


Report by National Inflation Association.


The top four central banks with the largest balance sheets today are: 1) Federal Reserve: $4.368 trillion, 2) European Central Bank: $2.997 trillion, 3) Bank of Japan: $2.585 trillion, 4) Bank of England: $676.3 billion. The top four central banks currently have total balance sheets of $10.626 trillion.


Eight years ago at the end of May 2006, the top four central banks with the largest balance sheets were: 1) European Central Bank: $1.391 trillion, 2) Bank of Japan: $1.378 trillion, 3) Federal Reserve: $851.6 billion, 4) Bank of England: $163.3 billion. The top four central banks at the end of May 2006 had total balance sheets of $3.785 trillion.


Today, the Federal Reserve alone has a larger balance sheet than the top four central banks combined eight years ago! Over the last eight years, the Federal Reserve's balance sheet has increased by 413%, the Bank of England's balance sheet has increased by 314%, the European Central Bank's balance sheet has increased by 115%, and the Bank of Japan's balance sheet has increased by 88%. All together, the total balance sheets of the top four central banks have grown by a stunning 181% in eight years!


Gold at the end of May 2006 was trading for $653 per oz and is currently $1,319 per oz. Gold over the last eight years has only increased by 102%! Gold is currently extremely oversold vs. the total balance sheets of the top four central banks, and is about to bounce big!


On September 6, 2011, gold reached an all time nominal high of $1,923 per oz. At that time, the total balance sheets of the top four central banks were only $7.311 trillion. At gold's record nominal high in September 2011, the ratio between the total balance sheets of the top four central banks and gold was a record low of 3.802. Today, the ratio between the total balance sheets of the top four central banks and gold is 8.056, after finishing May at a record high of 8.461. The average ratio over the last eight years has been 5.804.


NIA predicts that over the next 6-12 months, the ratio between the total balance sheets of the top four central banks and gold will return to its eight year average of 5.804. Based on the current total balance sheets of the top four central banks of $10.626 trillion, this will equal a gold price of $1,831 per oz.


Over the last eight years, the total balance sheets of the top four central banks have been growing at a compound annual growth rate of 13.77% and a compound bi-annual growth rate of 6.66%. NIA estimates that the total balance sheets of the top four central banks will finish 2014 at $11.334 trillion and reach $12.089 trillion one year from now. Therefore, if NIA's prediction comes true and the ratio with gold returns to its eight year average of 5.804 within the next 6-12 months, we will see gold prices rise within the next 6-12 months to between $1,953 and $2,083 per oz.


NIA predicts that over the next 24-36 months, the ratio between the total balance sheets of the top four central banks and gold will return to its record low from September 2011 of 3.802. Based on its eight year compound annual growth rate of 13.77%, the total balance sheets of the top four central banks will likely rise to $13.754 trillion in mid-2016 and $15.648 trillion in mid-2017. If NIA's prediction comes true and the ratio with gold returns to its record low of 3.802 within the next 24-36 months, we will see gold prices rise within the next 24-36 months to between $3,618 and $4,116 per oz.


Gold's high from January 1980 of $850 per oz currently equals $2,550 per oz adjusted for the CPI and $4,291 per oz adjusted for the real rate of price inflation. This is in line with NIA's prediction that gold will reach $1,953-$2,083 per oz within the next 6-12 months and $3,618-$4,116 per oz within the next 24-36 months.

Middle Finger Obama is laughing all the way




Join Laurie Roth each day on her national radio show from 7-10pm PAC at 


We need to put slapping machines all through the HOUSE and SENATE. What will it take and how many treasonous crimes must we endure at the hands of Obama while the HOUSE and SENATE do less than nothing? They must slap themselves now and understand that they don't work for Obama. They don't work for their careers. They work for the American people our Constitution, Bill of Rights and laws.

It is almost unforgivable that all we have seen for 6 years of this criminal behavior of Obama is the HOUSE playing at the fringe of an investigation here and an investigation there. Even with the talk and a few attitude displays on camera by members of the HOUSE the NSA still commits crimes by listening into our phone calls, sharing our records and using these against us. We still see the IRS targeting, auditing and terrorizing conservatives, while lying to Congress and making evidence disappear. How many computers can crash and how many dogs can eat homework?

Now, in the face of the additional treason of releasing high ranking Islamic Taliban Terrorists in exchange for a radical Muslim, deserter and enemy sympathizer Bowe Bergdahl, we have more than a little spike of deadly danger as a dramatic and obviously planned increase of illegal aliens are storming our borders.

There has been an 85% increase and surge with kids coming across the borders alone with cheat sheets and 'how to' manuals found. The word is out far and wide that Obama and Border Patrol will do nothing but look the other way. The word is now that Pelosi has been sent to welcome the illegals in. "Welcome aboard. Break all the laws you want, we do and no one does anything."

Fox news even noted that illegal aliens were being housed and fed at the Border Patrol Academy. Maybe they should all be shipped to churches so we feel very spiritual about this invasion and betrayal. Perhaps we could have them stay in the spare rooms at the HOUSE and SENATE buildings.   US Customs and border Protection is reporting 52,193 children who have come across so far. Just the Rio Grand Valley Border Patrol reports apprehending about 1,000 illegal aliens each day.

NSA, Obamacare, IRS, Benghazzi, illegal alien border conspiracy, Taliban prisoner exchange...just a few of the national scandals lined with crimes against the American people all leading back to Obama and his core team. Now, Speaker Bhoener is suing Obama because of his endless and unconstitutional use of executive orders. Great, but that should be just the carrot on the side of the plate. AND...this kind of action should have occurred many years ago. Where have you been Speaker Bhoener?

Long ago we should have seen impeachment papers and a vote in the HOUSE and tons of supporting media surrounding this. We should have seen forcible and public plans of Obama's removal due to several counts of treason and criminal activity...not a little talk and a baby investigation that goes nowhere...again.

Idiots in the HOUSE AND SENATE, Shut up already about protocol, your careers, negotiations and elections. We are in the middle of a national emergency and assault from the enemy from within - from our own white house. This is not about politics and procedure. THIS IS ABOUT SURVIVAL AND CRIMES.

How many times does Obama get to win as he gleefully sheds our laws and tramples over them? Obama is indeed operating according to his well-stated 'transformation and change' plan. We are being reduced to a Barbie Doll size with no clothes and an arm and leg missing. It is awkward, inconvenient and perhaps horrifying even. It doesn't fit into our plans, but Obama must be arrested, impeached, sued, tried for treason - stopped soon. He is a usurper with fake and stolen ID documents. He bypasses Congress on a regular basis as he forces his agenda. He continuously ignores our Government structure and accountability AND WE LET HIM. WHY???

Americans don't care what legal term the HOUSE or SENATE calls it, we just demand that they get something done and fast. Once we stop the Obama hemorrhaging, we can get back on track and undo the trainloads of Obama damage. We are waiting but not for much longer.

Empower Yourself - Whole Food Supplements - No Synthetics or GMOs - 100% Organic -



When the US government illegally passed the Affordable Care Act and hijacked one-third of the private market, they also hijacked the lives of every American. It is just taking a little time to trickle down and convert all human actions into a matrix of global control and slavery. You may be wondering how that is going to happen? The technology is sophisticated enough and Americans volunteer enough private information that harvesting this information and plugging it into statistical and algorithm programs is being used to predict behavior. From there behavior correction can be enforced via punishment and rewards. So, let's take a look at the futuristic healthcare planed out by unethical politicians and how it will impact your health.



Humans have habits and powerful people are finding ways to exploit those habits. When you make purchases at the grocery store, ABC store, the mall or wherever you shop those transactions are being tracked - if you are not using cash. The information is being sold to the healthcare and insurance industry. Your habits are evaluated by computer programs and your health is assigned a statistical score. For example, if you cancel a gym membership or quit the company softball team, all this information winds up in the database. Hospitals are harvesting detailed consumer data and creating profiles on patients in order to receive government rewards. However, you are told it is to better serve your health.  Health authorities justify this invasion of privacy and say it is in order to predict the statistical likelihood of disease and to intervene and re-educate patients on how to live. If you think you can have that cupcake at the company canteen and it won't wind up in the data base you are mistaken. Your purchase is recorded and sent to your doctor as a score. If your behavior is not corrected, your health insurance premium will jump for non compliance. Yes, the ACA says such data cannot be used to raise your insurance rates or drop you from health insurance. It doesn't mean you won't be taxed for your bad behavior and that is what the ACA is - a tax (not an insurance premium) according to the Supreme Court.



Everyone that has visited the Carolinas wants to live there; so pretty and the people are so nice. Well, the Carolinas also has the Carolinas Healthcare System and one of the largest data harvesting systems around. It has more than 900 care centers (including hospitals, nursing homes, doctors' offices and surgery centers). They boast that when their patients make purchases with their credit or debit card or with a store loyalty card all that information is plugged into their data base models and the patients are given statistical scores. Like a pupil at school, patients are being graded every day on the way they live. This can turn out to be worse than having a bad credit score. It is estimated that over 2 million people are housed in the Carolinas Healthcare System's algorithms, which are intentionally designed to identify "high-risk patients." The people who smoke, are on diabetic medicines, are overweight, are depressed, have personality disorders, are on heart drugs etc. are examples of high-risk patients.



The UPMC Insurance Services Division (a healthcare system provider) acquires demographic and household data on more than 2 million. They collect information such as if you own a car and how many live in your home. This information can come from your Facebook or other sources such as the Family Community Census people are told is mandatory but is not. We're told that this information helps insurance and health providers make predictions that most likely indicate who will use the emergency room or urgent care centers. More precisely, they know what liquid assets you have and who to sue to steal them.




Pennsylvania is another state housing a large data base. It is said to be the largest and collects demographic and household data to sell especially to hospitals. How will the collecting and selling of personal data affect your patient-doctor relationship? Actually physicians are glad to have this extra information because they say patients are not always truthful and the software profiling patients can paint a very different picture.


"Much of the information on consumer spending may seem irrelevant for a hospital or doctor, but it can provide a bigger picture beyond the brief glimpse doctors get during an office visit or through lab results. The patient's score is given to doctors and nurses to reach out to patients who are high risk to suggest interventions." Dr. Michael Dulin, Chief Clinical Officer for Analytics at Carolinas Healthcare System.


Patients on the other hand seem concerned as they are receiving unsolicited phone calls from their doctors' office or hospital staff. An accountant in Charlotte, NC with Type 1 diabetes got a call and has this to say:


"It is one thing to have a number I can call if I have a problem or question; it is another thing to get unsolicited calls. I don't like that. I think it is intrusive."   Jorjanne Murry, Charlotte, NC


According to Jorjanne Murry she also receives calls from her health insurance provider wanting to discuss her "daily habits" and she says she ignores them.


"You have to have a relationship, it just can't be a phone call from an employee saying I have to do this or do that. It just feels creepy." Jorjanne Murray, Charlotte NC



Health authorities are using the patient's score to also predict the next event from an asthma attack to a heart attack. The example given was if someone is asthmatic and buys cigarettes and the pollen level is high, according to Dr. Dulin the system will score the probabilities based on these patient activities. A patient is given a risk assessment score and it is shared information in the hands of the data provider.


"What we are looking to find are people before they end up in trouble. The idea is to use big data and predictive models to monitor the population and their health and drill down to individual levels and find people headed for trouble." Dr. Michael Dulin, Chief Clinical Officer for Analytics at Carolinas Healthcare System.



The Carolinas Healthcare System is tapping into consumer spending information to profile their patients and they have heard from patients that they are not comfortable with being profiled regardless of doctor-patient confidentiality policy. Dr. Dulin says that for such people they are considering an opt-out mechanism. A majority of patients don't know this is currently going on, so how would they have known to opt-out?



You have to ask, why a hospital would want to add to their work load. Someone has to monitor all this data and call all these patients when a computer spits out an alert or adjust the patient's health score. No business does this for free. The answer lies in the Affordable Care Act. The healthcare industry (including hospitals) is being levied with fines if they have patients being re-admitted within a thirty-day period. You might be asking aren't hospitals in the business of gleaning as many patients as they can to stay in business? Yes and those hospitals which comply with the ACA and reduce their readmissions are rewarded by government. Likewise, insurance companies who do not have enough customers paying premiums are guaranteed tax payer money by the government under the Affordable Care Act. So, Americans are supposed to swallow all this prying into their lives in order for them to avoid disease. The nanny-state just got bigger making itself your parent for life. Patients are not "bits of data" or "units" as the ACA refers to them. Many people see this as crossing way over the ethical line.



What you and I know is that we are already avoiding disease by avoiding bad foods, too much alcohol, smoking etc. We are already avoiding disease by seeking medical attention only in emergencies. We are already avoiding disease by avoiding the need for toxic drugs. We are already avoiding disease when we get regular exercise and drink more water. We are already avoiding disease by removing as many toxins and heavy metals with herbal cleanses. We are already avoiding disease by boosting our immune system with powerful herbs and getting adequate sleep. We are already avoiding disease with great information and the powerful herbal tools from Apothecary Herbs. If you've been meaning to cleanse organs or boost immunity to avoid disease now is the time to call Apothecary Herbs toll free 866-229-3663, International 704-885-0277 you're serious about herbs, you NEED Apothecary Herbs. Order before 6/30/14 and receive FREE ground ship (US only) and a Free Power Herbs e-book (value $14.99) with your order of $75 or more. Use coupon HMO1.





Herbalist Wendy Wilson on Herb Talk Live

Saturday morning show:

7 am EST on GCN

6/28/14 John Monroe natural solutions to vision problems upcoming workshop

Weekday show:

7 pm EST on AVR

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.


NATURAL VISION WORKSHOP- Must Sign Up Before July 10th!

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



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 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" from Apothecary Herbs POWER GREENS FOR PETS - Keeps you away from the vet.  Natural herbs for dogs and cats. Because we want organic pets

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


MORE HERB SECRETS IN THE POWER HERBS e-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 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.



Try Dandelion Root Tincture for inflammation, blood purification, respiratory infections, digestion and cancer protection at



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 or call 866-229-3663 to order your kit today.



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 This pure energy food source is so efficient; you won't feel hungry between meals and can safely lose weight.



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 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 You can layer this tincture with the Liver Detox Tea and be well!



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, where your healthcare options just became endless.



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



You already know that you can save on the half and full case discounts in the Vitamin Vault area at 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 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 or call their 24-hour live customer service line 866-229-3663, International 704-885-0277.



See Apothecary Herbs One Year Supply of Herbal Medicine at 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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