Beware the Ides of August

by Alfred Adask  

Caesar:  Who is it in the press that calls on me? I hear a tongue shriller than all the music cry "Caesar!"   Speak, Caesar is turn'd to hear.

Soothsayer:  Beware the ides of March.

Caesar:  What man is that?

Brutus:  A soothsayer bids you beware the ides of March.

Caesar ignored the soothsayer's warning, went about his business normally on March 15^th (the "ides" of March) and was assassinated on that day.

I don't expect anyone important to be assassinated on or about the "ides" of August (August 15^th).  But I strongly suspect that August 15^th might mark the beginning of dramatic changes in the prices of silver and, soon after, gold.

Here's why:  On August 14^th, the "London Silver Fix"-the financial institution composed of three major banks (Deutsche Bank, Bank of Nova Scotia, and HSBC) that set/"fixed" the daily price of silver for over a century-will definitely cease to exist. 

Next day (on August 15^th), the "London Silver Fix" will (probably-but not yet, definitely) be replaced by a new-and-improved institution called the "London Silver Price".

Given that there's so little difference between the names of the old and new institutions, we might suppose that there'll also be virtually no difference in their function, authority and power. 

"The Fix is dead-Long live the Fix!," hmm?

But I doubt that's true.  If a major financial institution that's enjoyed enormous power and profits for over a century is about to voluntarily dissolve, there must be an extraordinary, underlying reason for that dissolution.   I believe that reason involves the growing threat of legal liability-both civil and criminal-for the three banks that have heretofore "ruled" and profited from the London Silver Fix. 

Legal Liability

According to ZeroHedge.com, on July 26^th,

"It was reported that the silver bullion banks (Deutsche Bank, Bank of Nova Scotia and HSBC) were sued for manipulating the silver fix in a class-action lawsuit. 

"Another class action lawsuit [was] filed on July 9, 2014 against the London gold fix member banks: Bank of Nova Scotia, Barclays, Deutsche, HSBC and SocGen.

The gold-manipulation lawsuit alleges that:

". . . from approximately January 1, 2004 to the present, Defendants manipulate the prices of gold and gold derivatives contracts on their own and combined, conspired, and agreed with one another and unnamed co-conspirators to manipulate the prices of gold and gold derivatives contracts. This agreement was intended to permit each Defendant individually and all Defendants collectively to reap profits from their foreknowledge of price movements in the gold market."

Depending on their verdicts, these lawsuits may be significant.  But a greater significance may be that either:

1)  The "The Powers that Be" have abandoned the previously "protected" gold and silver "Fixes" and have allowed them to be sued for reasons which remain to be discovered; or

2) "The Powers that Be" that previously operated, and profited from, the "Fixes"-have grown too weak to protect the gold fix and silver "Fixes" from being sued.

In either case, something strange and potentially extraordinary seems to be taking place with the closure of the London Silver Fix.   Perhaps, we've reached a monumental turning point. 

*  I can't say that these July lawsuits caused the demise of the London Silver Fix (and, later perhaps, the London Gold Fix).  It's been common knowledge since at least June that the London Silver Fix would close on August 14^th.  Thus, the decision to close the London Silver Fix was made at least a month before these two lawsuits were filed.

Still, these lawsuits may have been in the works for most of a year.  The banks running the Silver and Gold "Fixes" may have anticipated a coming wave litigation (everyone who's ever lost money in the gold or silver markets may want to sue the "Fixes" and the "fixers").  Therefore, the bankers may have decided to abandon the Silver Fix in order to limit their legal liabilities.  

Whatever the precise cause(s) for the London Silver Fix to close its doors may be, growing threats of legal liability must've weighed heavily in that decision.

If the three major banks are being driven out of the lucrative and powerful positions within the existing London Silver Fix by threats of legal liability, it follows that the proposed London Silver Price will be subject to the same legal liabilities if it engages in similar conspiracies to manipulation the price of silver.  That, in turn, suggests that the newly-proposed London Silver Price will be unable or unwilling to manipulate the price of silver to the same degree as has been true for at least a decade under the London Silver Fix.  And that implies that, starting August 15^th, the price of silver will be at least less manipulated.  

All of which suggests that the price of physical silver will soon become more volatile and may rise significantly, perhaps dramatically, soon after the "ides" of August. 

Silver Derivatives

"Silver derivatives" are hedging instruments used as "insurance policies" to protect silver investors against a dramatic rise or fall in the price of silver.  The current silver markets are at least partially affected by "silver derivatives".   Therefore, the consequences of ending the London Silver Fix may extend beyond mere price increases for physical silver.

For example, under some circumstances a silver investor might stand to lose a lot of money if the price of silver exceeded $25/ounce on, say, September 1^st.  Therefore, he might invest in a silver derivative that guaranteed to pay him some amount of money if the price of silver rose above $25/ounce on September 1^st.  Thanks to the derivative, he'd be compensated for whatever loss he suffered by a significant rise in the price of silver.

Another investor might suffer a loss if the price of silver fell below $18/ounce on, say, September 27^th.  Therefore, they might purchase a silver derivative that guaranteed to pay him some amount of money if the price of silver fell below $18 on the 27^th.

I've highlighted the previous mentions of "price" because silver derivatives are all about price.  If the price of silver rises above or falls below a certain level, the institution that issued a silver derivative may have to pay up.

All of the silver derivatives sold before May or June of this year were purchased by means of contracts which usually included an enormous presumption that's now become a problem.    It was presumed that, because the London Silver Fix was an institution that'd been around for generations, the silver derivative contracts that depended on the price of silver on a particular date would naturally be determined by the London Silver Fix.  

Before last June, virtually no one dreamed that the London Silver Fix could cease to exist on August 14^th.  Therefore, virtually no one entering into a silver derivative contract prior to June included any contractual language that provided for a price determination by some other entity if the London Silver Fix ceased to exist.

But if the London Silver Fix expires on August 14^th, who or what entity will determine the price of silver after that date?

The implications of this question are huge.

To illustrate, let's suppose that, last January, I contracted with an automobile dealer to buy a new Cadillac on September 1^st for, say, $40,000 on a lay-away plan.  Let's suppose that, much to everyone's surprise, Cadillac goes out of business on August 14^th.  Can the dealer therefore give me a Ford or Chrysler instead of the promised Cadillac?  Can I refuse to pay the $40,000 or demand the return of whatever I've already paid on that contract?

A contract is a contract.  When circumstances change making the express terms of the contract impossible to fulfil, the contract is arguably voidable and could provide grounds for losses and litigation lasting for years.

Similarly, given that: 1) silver derivatives are primarily based on changes in the price of silver; 2) most previous silver derivative contracts specified that that each day's price will be set by the London Silver Fix; then 3) what happens if the London Silver Fix ceases to exist?  

If a silver derivatives contract specified that only the London Silver Fix would determine the price of silver on a particular day after August 14^th, and no proviso was included for an alternative authority to set the price of silver, how can the terms of silver derivatives contract be enforced?

After all, the real (free-market) price of physical silver is not obvious or universal. 

I.e., if you ask people what they think the true price of silver is today, some might ask you if you're talking about physical-silver or paper-silver.  As I write this article, the New York spot price of "paper" silver is $20.48, but if you ask me, the real price of physical silver should be at least $50/ounce.  Ask someone else, and he might say the real price of physical silver is $100, maybe $500-and some might even claim $1,000/ounce. 

Why is there so much disagreement as to the price of physical silver?  Because that price has been "fixed," manipulated and suppressed for a decade or more by financial institutions-including the London Silver Fix. 

But once the London Silver Fix ceases to exist, there may not be a single authority able to "fix" the price of silver.  Even if some new authority emerges, what impact can that authority have on silver derivative contracts that expressly depend on the price determinations by the now-dying London Silver Fix? 

The loss of the London Silver Fix will create an opportunity for any party to a silver derivative that's likely to suffer a financial loss based on that derivative, to declare that the underlying contract is no longer unenforceable and is therefore voidable.  Given that every silver derivative includes one winner and one loser, about half of the parties to silver derivatives (the losers) may have an incentive to cancel their contracts.  The result could be a lot of silver contracts whose validity is denied and/or rendered unenforceable.

What's the value of silver derivative that can't be legally enforced?  

Zero.

I don't know what percentage of the current market prices for paper silver can be traced to silver derivatives that expressly rely on the London Silver Fix to set prices after August 14^th.  But I'll bet the silver markets are at least partially dependent on such silver derivatives.  If those derivatives turn out to be unenforceable and therefore worthless, how will that affect the market price of paper silver?

Nobody knows for sure.

Still, in the midst of this price uncertainty, what can we expect?  

Volatility.  Mucho volatility. 

In fact, there might be so much volatility after August 14^th, that we might describe the markets as chaotic.  Prices go up dramatically and unpredictably.  Prices go down dramatically and unpredictably. 

But mostly, due to fundamentals, prices go up dramatically.

*  All of the previous speculation is based on my opinion that silver derivative contracts that expressly rely on the London Silver Fix to set the price of silver on any date after August 14^th may soon be unenforceable and worthless.

Although I did run for Place 1 of the Supreme Court of Texas in A.D. 1992, I'm not a licensed attorney and I don't have access to all of the facts affecting the validity of silver derivatives.  Therefore, my opinions on the law should not be relied on.  Even so, it appears I'm not the only one who doubts the enforceability of silver derivatives that rely on prices set after August 14th by the London Silver Fix.

On July 30^th, the International Swaps and Derivatives Association (ISDA) published a "Bilateral Form of Amendment Agreement for Certain Silver Transactions".  According to the ISDA,

"ISDA has published a Bilateral Form of Amendment Agreement for Certain Silver Transactions, which addresses the winding down of the administration of the London Silver Fix by the London Silver Market Fixing Limited on August 14, 2014.  Counterparties with outstanding contracts referencing the 'SILVER-FIX' can use the amendment agreement to replace that [reference to the "SILVER-FIX"] with a new commodity reference price, which may include a reference to the new London Silver Price, expected to be available from August 15, 2014."              [Bracketed text added by Adask.]

The first sentence in previous paragraph tells us that the ISDA is merely publishing a "form" that the two parties might agree to as an "amendment" to an existing silver derivative contract that heretofore relied on a price determination by the soon-to-be-defunct London Silver Fix. 

Because the form is "bilateral" and an "agreement," its use can't be compelled.  Use of this form is only recommended and depends on the mutual consent of all parties to the existing silver derivative.  If any party to an existing silver derivative contract refuses to agree to the proposed amendment, the contract remains as is and will probably be voidable after August 14^th.  

The second sentence explains the purpose of the proposed amendment:  to allow parties to an existing silver derivative contract to delete the original express references to the "SILVER-FIX" ("London Silver Fix") and replace those references with a new "commodity reference price" that might be the forthcoming "London Silver Price"-but, by mutual agreement, could also be the Shanghai Gold Exchange, the Chicago Mercantile Exchange or any other mutually-agreed market or institution known to post a daily price for silver.

Note that, as of July 30^th, the ISDA describes the "new London Silver Price" as being expected to be available from August 15, 2014. 

Apparently, just sixteen days before the London Silver Fix will definitely expire, the ISDA only "expects" it to be replaced by the "new London Silver Price".  Thus, the ISDA implies that it's not yet absolutely certain that the London Silver Price will actually be established on August 15^th-or at any date thereafter.

Think about that.

It means that in just over two weeks before the London Silver Fix is scheduled to expire, there is not yet a definitely-known replacement.

How can it be that the London Silver Price is not yet a done deal-unless the whole "silver fix" process is in such a state of chaos that no agreement has yet been crafted?  If chaos is already so prevalent, what are the chances that any entity chosen or created to replace the existing London Silver Fix will exert much authority or even last for more than a few months?

If the proposed London Silver Price entity is not yet a done deal, there's no legal, moral or ethical obligation to subscribe to its price determinations on or after August 15^th.  For the moment, parties to existing silver derivatives can agree to reference any known institution or market for whatever price determination is required to set the price of silver on any given day.  

More, parties to future derivatives can base their price determinations on any institution or market they mutually-agree to choose.

That tells me that the International Swaps and Derivative Association (ISDA) doesn't give a damn about whichever market or institution is ultimately relied on to set the price in the existing (or future) silver derivatives-just so long as the newly-referenced market/institution is anything other than the soon-to-be-demised London Silver Fix.  

That, in turn, implies that the International Swaps and Derivative Association isn't interested in protecting the Gold Fix or the Silver Fix.

They're interested in protecting derivatives.  

I read the ISDA's proposed form as evidence that the ISDA agrees with my contention that the loss of the London Silver Fix could cause some significant number of silver derivatives to become suddenly worthless. 

The demise of the London Silver Fix is largely irrelevant. 

Its replacement by the London Silver Price is largely irrelevant.

The primary issues are:  1) How many existing silver derivatives contracts will be rendered voidable after August 14^th by closing the London Silver Fix?; and 2) What domino-like consequences might follow if enough silver derivatives are thereby rendered unenforceable and void?  

*  For now, God only knows how many silver derivatives must become worthless before the world's paper-silver markets collapsed. 

For now, God only knows how many silver derivatives must be declared worthless before they trigger a domino-like chain reaction that collapsed the world's entire derivatives market-which some estimate to be valued at over $2 quadrillion.

But soon, we may all have a better idea of: 

1) how many silver derivatives will be rendered worthless by the loss of the London Silver Fix; and,

 2) how many worthless silver derivatives it takes to collapse the silver-or even global-derivatives markets.

How soon might we know? 

Might be as soon as August 15^th.

Beware the Ides of August. 

AMERICAN SURVIVAL WEEKLY NEWS

U.S. employers extended their hiring into July by adding 209,000 jobs. It was the sixth straight month of job growth above 200,000

July's gain was less than in the previous three months, though, and probably wasn't strong enough to suggest that the Federal Reserve will soon raise interest rates to curb inflation.

With reports of consumer spending is rising, manufacturing is strengthening and auto sales are up.

Auto sales were up to a reported unusually large number of subprime loans....OK...this is good?  Looking back on the second quarter of retail sales...sure....up from first but significantly lower except for June.

The unemployment rate ticked up in July to 6.2 percent from 6.1 percent as more Americans started looking for work. Most didn't find jobs, but the increase suggests that they're more optimistic about their prospects.  Glad they are optimistic for they will have a rude awakening when corporations need to comply with Obamacare come 2015.

The jobless aren't counted as unemployed unless they're actively seeking work. 

The pickup in hiring has yet to translate, however, into larger paychecks for most Americans, a factor that has hobbled the recovery.

 A measure of signed contracts to buy homes slipped in June, the National Association of Realtors said this week

 Friday's report echoes other data that point to an improving economy. Growth accelerated during the April-June quarter, the government said Wednesday, after contracting sharply in the first three months of the year.

Last quarter, Americans stepped up their spending, particularly on autos, furniture and other big-ticket items. Businesses also spent more on plants, office buildings and equipment.

The Conference Board's consumer confidence index jumped to its highest level in nearly seven years in July.

New York judge scolds Argentina; says nation still has obligation to pay US bondholders

A U.S. federal judge Friday urged Argentina to resume negotiations "as promptly as possible" to resolve its debt crisis and said the South American nation's officials must stop publicly uttering what he described as "half-truths" that mislead people about its legal obligations.

U.S. District Judge Thomas P. Griesa scolded (REALLY?) Argentina at a hearing, saying the country's obligations to pay U.S. bond holders who obtained court judgments must be resolved, likely through negotiations.

NEGOTIATING THEIR  OWN TRADE AGREEMENTS??

Japan and Brazil sign treaties in the energy, infrastructure, mining and educational areas

Japan has agreed to lend Brazil nearly $1 billion to be invested in offshore oil platforms and in the production of grains.

The loans were announced Friday at the end of a meeting between Japan's Prime Minister Shinzo Abe and Brazilian President Dilma Rousseff. Japan will lend $500 million for the construction of eight ship hulls for offshore oil platforms and $200 million for the production of soybeans and corn.

The two leaders also signed mutual cooperation treaties in the infrastructure, pharmaceutical, energy, mining and educational areas. The two leaders discussed ways to increase bilateral trade which last year amounted to $15 billion. Brazil is the last stop of Abe's five-nation tour of Latin American and the Caribbean that also included Mexico, Trinidad and Tobago, Colombia, and Chile.

ON THE LOOKOUT-----The United States Border Patrol is asking citizens to keep on the lookout for a red 1951 Chevy that they suspect is being used to smuggle illegal immigrants across the border from Mexico into points along the U.S. border.  If you see the vehicle pictured below and have reason to believe that it is the suspect vehicle, you are urged to contact your local Police Department or the U.S. Border Patrol.

US economy grew at strong 4 percent rate in second quarter after sharp contraction in winter

The U.S. economy has rebounded a grim start to 2014 and should show renewed strength into next year. That was the general view of analysts Wednesday after the government estimated that the economy grew at a fast 4 percent annual rate in the April-June quarter. Consumers, businesses and governments joined to fuel the second-quarter expansion. The government also said growth was more robust last year than it had previously estimated.

Fed slows bond buying further but provides no clear signal on timing of first rate hike

The Federal Reserve is further slowing the pace of its bond purchases because it thinks an improving U.S. economy needs less help. But it's offering no clearer hint of when it will start raising its benchmark short-term interest rate. The Fed on Wednesday reiterated its plan to keep short-term rates low "for a considerable time" after its bond purchases end.

A look at how the Fed's views have changed on inflation and the economy

FROM THE ASSOCIATED PRESS

A comparison of the Federal Reserve's statements from its two-day meeting that ended Wednesday and its meeting June 17-18:

JOB MARKET: Now: The Fed sees a better job market, but has added new qualifications: "Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources."

Then: "Labor market indicators generally showed further improvement. The unemployment rate, though lower, remains elevated.

"INFLATION:

July: Fed policymakers acknowledge that inflation has reached its 2 percent objective: The Fed "judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat."

June: The Fed "recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.

"ECONOMY:

July: The Fed's assessment is slightly more definitive: "Growth in economic activity rebounded in the second quarter. ... Household spending appears to be rising moderately and business fixed investment is advancing.

"June: "Growth in economic activity has rebounded in recent months. ... Household spending appears to be rising moderately and business fixed investment resumed its advance."

JPMorgan paying $650K to settle CFTC

JPMorgan Chase will pay $650,000 to settle charges by federal regulators that it filed inaccurate reports on the trading positions of some of its large customers. The Commodity Futures Trading Commission announced the settlement Tuesday. The CFTC said that JPMorgan continued to submit inaccurate reports to the agency from 2012 through February of this year even though CFTC staff found errors in them and notified JPMorgan. The New York bank neither admitted nor denied wrongdoing in the settlement

House Republicans set Thursday vote on $659 million bill for border crisis (what is the point?? What a waste of time, energy and money.)

House Republicans unveiled a slimmed-down bill Tuesday to address the immigration crisis on the U.S.-Mexico border by sending in National Guard troops and speeding migrant youths back home.

 The election-year measure would allow Republicans to say they tried to solve the humanitarian problem in South Texas, even though it stands no chance of becoming law.

The bill would cost $659 million through the final two months of this fiscal year, far smaller than the $3.7 billion requested by President Barack Obama for this year and next, and a sharp reduction from the $1.5 billion initially proposed by the House spending committee.

The cuts were designed to win over skeptical conservatives and give lawmakers something they could pass before leaving Washington at week's end for their annual August recess. 

Diplomatic sources: European Union adopts tough new economic sanctions on Russia over Ukraine

Frustrated by the apparent ineffectiveness of previous sanctions and outraged by the deaths of 298 people aboard the Malaysia Airlines plane downed over eastern Ukraine, the European Union adopted tough new economic sanctions against Russia on Tuesday, EU officials and diplomats said.

The measures, which were prepared in coordination with the United States, include an arms embargo, and a ban on the sale of dual use and sensitive technologies, such as advanced energy technology equipment relevant for deep sea and Arctic drilling. Such equipment will now be subject to prior approval by competent national authorities, an EU official said.

Under the financial sanctions, Russian state-owned banks will be banned from selling bonds or equities with a maturity of over 90 days in European capital markets, the sources said, speaking on condition of anonymity because they were not authorized to make public statements.

The ambassadors also added eight names to the list of people subject to EU-wide asset freezes and travel bans, including four people close to Russian President Vladimir Putin, the EU official said. They also put three more entities on the list of companies alleged actions against Ukraine's sovereignty or territorial integrity, that official said.

on Monday, in a rare videoconference call with President Barack Obama, the leaders of Britain, Germany, Italy and France expressed their willingness to adopt new sanctions against Russia in coordination with the U.S., an official French statement said.

Full appeals court upholds country of origin labels for steaks, ribs and other cuts of meat

A federal appeals court on Tuesday upheld new government rules requiring labels on packaged steaks, ribs and other cuts of meat to say where the animals were born, raised and slaughtered.

The meat industry has attempted to block the rules, which went into effect last year, saying they are costly and provide no health benefits to the consumer. The industry said in court that the rules go beyond what Congress intended and violate First Amendment rights to freedom of speech by forcing meat producers to provide information about their products without "directly advancing a government interest.

The lawsuit was led by the American Meat Institute, which represents the nation's largest meatpackers, and joined by other meat industry groups.

 The meat industry has argued that the paperwork behind the labels is burdensome and that it's not practical to keep cattle and hogs from other countries separate from domestic animals.

In a statement, AMI said the decision is disappointing."We have maintained all along that the country of origin rule harms livestock producers and the industry and affords little benefit to consumers," said James H. Hodges, the group's interim president and CEO. "This decision will perpetuate those harms.

Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver, an allegation similar to earlier suits involving the London gold fix.

The banks unlawfully manipulated the price of the metal and its derivatives, an investor claims in a complaint filed yesterday in federal court in Manhattan. The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, according to the suit.

"The extreme level of secrecy creates an environment that is ripe for manipulation," according to the complaint. "Defendants have a strong financial incentive to establish positions in both physical silver and silver derivatives prior to the public release of silver fixing results, allowing them to reap large illegitimate profits."

The lawsuit is the latest to be brought against banks alleging manipulation of a benchmark. Suits have been filed against Deutsche Bank and Bank of Nova Scotia, HSBC and other banks in federal court in New York over allegations involving the London gold fix.

Silver Benchmark

"We intend to vigorously defend ourselves against this suit," Diane Flanagan, a spokeswoman for the Bank of Nova Scotia, said in an e-mail. Juanita Gutierrez, a spokeswoman for HSBC, and Amanda Williams, a representative for Deutsche Bank, declined to comment.

J. Scott Nicholson, a Washington state resident who filed the case, is seeking to represent a class of investors who have bought silver future contracts since Jan. 1, 2007.

The suit includes claims of aiding and abetting manipulation, as well as violation of antitrust laws and the Commodity Exchange Act. Nicholson seeks unspecified damages.

The 117-year-old system of fixing prices for the $5 trillion silver market is set to change next month.

London Silver Market Fixing Ltd. said in May it would stop administering the benchmark, used by everyone from mining companies to central banks to trade or value metal, once Deutsche Bank ends its participation on Aug. 14.

1897 Start

The German lender, HSBC and Bank of Nova Scotia (BNS) conduct the silver fixing, which first took place in 1897 at the office of Sharps & Wilkins with former dealers including Mocatta & Goldsmid, Pixley & Abell, and Samuel Montagu & Co.

Deutsche Bank, Germany's biggest lender, said in January that it would withdraw from participating in setting gold and silver benchmarks in London, a month after announcing that it would cut about 200 jobs in commodities and exit dedicated energy, agriculture, dry-bulk and base-metals trading. JPMorgan Chase & Co., Morgan Stanley and Bank of America Corp. also are retreating from raw materials.

Precious metals are getting more attention from regulators after price rigging in everything from interbank lending rates to currencies led to fines and overhauled financial benchmarks.

The U.K.'s Financial Conduct Authority in May fined Barclays Plc after a trader sought to influence the gold fix in 2012. An LBMA survey showed the market wants a new silver system to be an electronic, auction-based process with more direct participants and prices that can be used in trades.

The case is Nicholson v. Bank of Nova Scotia, 14-cv-5682, U.S. District Court, Southern District of New York (Manhattan)

With deadline looming, lawmakers reach $17B deal on VA health care

A bipartisan deal to improve veterans' health care would authorize at least $17 billion to fix the health program scandalized by long patient wait times and falsified records covering up delays, the bill's chief supporters said Monday.

The agreement includes $10 billion in emergency spending to make it easier for veterans who can't get prompt appointments with Veterans Affairs doctors to obtain outside care; $5 billion to hire doctors, nurses and other medical staff; and about $1.5 billion to lease 27 new clinics across the country, the chairmen of the House and Senate Veterans Affairs committees said.

 The bill also would expand a scholarship program for veterans to include surviving spouses of military members who died in the line of duty, allow all veterans to qualify for in-state college tuition, and grant the Veterans Affairs secretary authority to immediately fire senior executives, while providing employees with streamlined appeal rights

Lloyds bank to pay $369 million to settle with US, British regulators over market rigging

Lloyds Banking Group is paying $369 million to U.S. and British authorities to settle allegations it manipulated a key global interest rate. Lloyds, one of the world's largest banks, on Monday became the sixth financial firm sanctioned in the international rate-rigging scandal. The U.S. and British regulators said Lloyds attempted to manipulate, and in some cases succeeded, in manipulating the London interbank offered rate, known as LIBOR. The LIBOR, the rate used by banks to borrow from each other, affects trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans. Under an agreement with the U.S. Justice Department, Lloyds will be allowed to avoid criminal prosecution in exchange for admitting responsibility for misconduct and continuing to cooperate in the investigation of major banks' actions regarding LIBOR.

Race, Bush, Anti Americanism just don't work anymore Obama

BY ADMIN, ON JULY 31ST, 2014 LAURIE ROTH

Obama's attacks and sea of words aimed at 'non Obama worshipers' are not yielding the results they once did. His 'Communist transformation gun' is now shooting colored bee bees and not the elephant bullets he once fired at us. America, in our Obama emergency room has been forced to watch and listen to the endless criminal lies of 'Fast and Furious' 'the Benghazi murders' 'IRS crimes, cover ups and lies and 'NSA cover ups and lies.' We have watched 'illegal wars and endless executive actions moving around Congress, Obamacare horrors, BLM nightmares and now he threatens another executive action the size of Godzilla and King Kong against the people of America.

Obama is saying he will give amnesty with an executive order (because he hates Congress and the law you know) for at least 5 million of the illegal alien mystery people, who have been invited, funded and are flowing through out the country. This week I interviewed Constitutional attorney and head of the US Justice Foundation - www,usjf.net,   Michael Connelly about impeachment efforts and the latest with Obama.

Connelly strongly believes that his proposed move for amnesty will crush Obama and the Democrat brand. He pointed out that over 77% of the people want and demand the illegal 'children. be shipped home.   It appears that the 'word master' Obama has invented a new definition for children it seems. 'These 'children' are defined up to age 23 that get free housing, food, travel on planes and buses and as icing on the cake, they even get an allowance. Don't forget the folks recruited to care for the foreign - invited gang bangers, criminals and druggies... get paid money every day for 'caring' for them.

Obama has literally been sending busloads and planeloads of foreign, disease infested criminals through out America and has always intended to keep them here. The ploy...other than hurt, sicken and destroy Americans has been to set up the Conservatives and GOP to look like bullies and racist thugs who hate Mexicans and poor people if they dare stand up against his UN Constitional over reach and amnesty 'Executive Order.' He thinks he can mobilize his progressive, liberal base to run to the polls in the 2014 elections and keep the House and Senate.... WRONG.

Instead, this latest move may just be the undoing of Obama. Instead of the GOP and Americans swirling down the toilet bowel screaming as the stinky bubbles fly by, Obama and his transformational agenda are the swirling ones. I predict that if Obama pulls this 'amnesty' scheme this time he will only help the Conservatives take even more seats than they already will in the Senate and seal his impending doom.

When I asked Michael Connelly about Impeachment efforts against Obama, he strongly feels that Congress must proceed with Impeachment. Regarding the 'timing' concerns...it won't be concluded anyway until after the 2014 election cycle, but it must be voted on and passed by the HOUSE soon after the 2014 election to stop Obama's 'executive order' over reach plans to complete his plan of destruction for America. Investigations, subpoena power and threats of prison must fly to everyone in the Obama daisy chain of cover-ups and lies. God will not be mocked, nor will the American people much longer. Hold on to your hats. The American tornado is flying strong and it is on its way to the White House.

Join me each day as I take on these and other issues. You can listen live from 7-10pm PAC at www.ksbn.net and listen later to archives at www.therothshow.com

BE PREPARED FOR PATHOGENS

We live at a time where bacteria are adapting to survive. We realize that bacteria is surviving, mutating and spreading in populations which have weak immune systems. Bacteria are lurking in foods, soil, air, water and we can become easily infected. Pharmaceutical companies are not developing new antibiotics to treat these pathogens and this may be a good thing. At what point do we stop promoting the mutation of bacteria thru drugs? On the other hand, where does that leave us when we encounter these hardy, super surviving, mutating bacteria? Let's check out some alternatives.

WHY ANTIBIOTICS ARE LIMITED?

When we use antibiotics to fight bacterial infections we produce bacteria that adapts. One reason the bacteria adapts is that antibiotics have isolated chemical components that the bacteria can adapt to mimic in order to evade the drug. Or the bacteria can make its own antidote to the antibiotic. Modern medicine says this is mutating bacteria.   The bacteria can develop resisting microbes within a short time (3 months). When you send in one-dimensional antibiotics in to destroy a bacterial pathogen it is like cracking a code comprised of only one or two digits. Not a problem for the adapting bacteria. We need more complex antibacterial agents to fight off and defeat unfriendly bacteria.

MORE COMPLEX OPTIONS

If antibiotics are so easy for bacteria to identify and code, what could be used to stop the bacterial invasion? Logic would suggest we use a more complex opponent, which is not so easily identified and defended against. Do we have anything that fits this type of counter defense strategy? Yes, we do and they are called herbs. Bacterial fighting herbs have very complex properties not so easily identified to make an antidote for. Herbs contain very complex bacterial fighting compounds, which go way beyond antibiotics. Let's take a look at a few of them.

GARLIC

Our ancient ancestors have used herbs such as garlic to fight infections for thousands of years. While the elite had expensive doctors with fancy tools and off the wall treatments; the poor had garlic.  The poor had sanitary and malnutrition problems working against them on top of the bacterial infection. However, they often survived their illnesses using garlic. Garlic has a very broad spectrum of compounds to be used against; viruses, bacteria and parasites. If you had to compare the defensive action of garlic to a drug it would be penicillin. It is very effective against food-borne pathogens, staph, strep, salmonella and E. coli. In my opinion it isn't whether to use garlic or not but in what form to use it; tablets, liquids or raw?  Keep in mind that pills or tablets take time to be digested. Eating raw garlic is also good but you will need to eat six or more cloves and this can be nauseating to patients. Liquid concentrates are absorbed right away and offer an alternative to eating large doses of raw garlic. Garlic naturally thins the blood so use caution is taking medical doses of garlic if also taking anticoagulants. 

ONION

I like to include onion (cousin to garlic). Onion has wonderful antiseptic compounds and provides vitamin A, C and high amounts of potassium and magnesium to the body. These nutrients are essential to protect cells and move fluids to cleanse away infection. Onion will help the body to remove mucous or phlegm along with bacteria, viruses and fungi. It also reduces inflammation. In ancient times garlic and onion juice were applied externally to the body to fend off infectious bacteria during plagues.  

ECHINACEA

The lovely Echinacea root is packed with antibacterial fighting compounds. The human immune system will use these compounds to magnify the strength and efficiency of the immune system defenses. I prefer to use the root when it is harvested in the fall. This is when the majority of the plant compounds returns to the root and are more potent than the flower or leaves. Fresh Echinacea root will be the most powerful, but dried root still has an impressive punch. What form is best; tea, pills, or tincture? I always use the most potent form - the tincture. It is also much easier to adjust doses for children and pets. I will often pair Echinacea with garlic for more bacteria-fighting power. Echinacea root is also an excellent herb to use against tuberculosis.

THYME

Many people overlook the power of thyme herb to combat bacteria. This herb has powerful oils that can also kill parasites. During the Victorian age thyme oil would be used as a disinfectant and to clear away foul-smelling bacteria. If using a thyme tincture the dose to kill bacteria is going to be one teaspoon. Thyme has long been used to fight against the Whooping cough bacteria.

MARSHMALLOW ROOT

Antibacterial herbs are wonderful to use and I also like to add in herbs to soothe irritated and inflamed tissue. When used topically, marshmallow root will absorb irritants out of the skin and soothe it.

GINSENG

American ginseng should not be left out of our bacteria fighting arsenal. The ginseng will aid the other antibacterial herbs to help cleanse the body faster of the pathogens. The synergistic effect of ginseng should never be overlooked.

GINGER ROOT

I like to add ginger to my bacteria-fighting herbs because it is what herbalist refers to as a carrier herb. It will distribute the other herbs throughout the body and even to the smallest capillaries. Ginger root will make it difficult for bacterial pathogens to hide. Ginger accentuates the power of the other herbs. Cayenne herb is also an option; however the ginger root is not as hot and may be a better herb to use in some situations.

PEPPERMINT LEAF

Any medical doctor would turn their noses up at the suggestion of using peppermint for serious bacterial pathogens such as cholera. I would use 2 full teaspoons of peppermint tincture for each application along with the other herbs listed.

TOPICAL USE

We read report after report of people with flesh-eating bacteria and the antibiotics have little to no chance of stopping it. According to Australia's Royal Brisbane and Women's Hospital they have discovered that if you rub bacterial disinfecting oils on the skin that it helps to kill and stop the spread of the bacteria. Tea tree oil, eucalyptus or lemon grass oil used in conjunction with immune system support herbs can defend you against, MRSA, MERES, Staph, flesh-eating vibrio vulnificus (cousin bacterium to Cholera) and other drug-resistant bacterial infections. Some hospitals overseas are using these oils to disinfect operating rooms and hospital beds. The oils are excellent for gram negative or gram positive bacteria. I would not hesitate to use such herbs against Ebola. The Ebola virus weaponizes the blood and I would use immune boosting herbs with blood cleansing herbs to sweep the blood of the pathogen. You'll find such herbs in my Pandemic Kit. 

AGGRESSIVE BACTERIA

When dealing with aggressive bacteria that can manifest conditions within hours, I have found it is best to start with aggressive doses of herbal tinctures (extracts). For instance if the regular adult dose of a tincture is � teaspoon, then I would start with a full teaspoon and adjust up or down accordingly. I would use the aggressive doses every 2 hours while awake.

ARE THESE THE ONLY HERBS?

Are these the only herbs to use to defeat bacterial infections? No, and there are many combinations of herbs people use all over the world. I don't recommend using imported exotic herbs unless under the recommendation and guidance of a natural physician. Instead use herbs indigenous to your area.

POWER BLOCK

I look at many of these bacterial-fighting herbs as helping the immune system block the bacteria's ability to spread and to also help the immune system kill the pathogen. The body will do this as quickly as possible to prevent the likelihood of the bacteria manufacturing an antidote or cloaking itself to detection. It is very important to have a healthy and strong immune system. Eating healthy will determine the strength of your immunity. Sugar (such as in a candy bar) will make any immune system operate at 50% making anyone more vulnerable to disease for more than eight hours. Alcohol in excessive amounts will block nutrition to the immune system which makes manufacturing the killer T-cells much more difficult. Alcohol will also make the red blood cells clump together and can plug up vessels. People who drink in moderation are not at risk. Those who have more than two drinks nightly are at risk. Drunkenness produces nutritional deficiency and corrupts immunity for up to 24 hours after getting drunk. Chronic drinkers have a higher risk of bacterial infections such as pneumonia and tuberculosis. 

TRAVEL ADVISORY

If you are traveling, don't forget to check the travel advisory web sites on the types of pathogens in the areas you are traveling to. Pack your bacterial fighting herbs and take them with you or ship them to your location.

GET THE GOOD STUFF

Make sure when you invest in your herbal products that you are getting highly potent formulations powerful enough to assist the body to fight off disease. Apothecary Herbs makes professional strength formulas you won't find in stores. These are the formulas naturopaths, chiropractors and other health professionals purchase and you can too. Call to place your order for their Immune Boosting products, Pandemic Kits and more toll free 866-229-3663, International 704-885-0277 http://www.thepowerherbs.com, where your healthcare options just became endless.  

Sources:

http://www.thealternativedaily.com/top-4-herbs-to-fight-bacteria/

http://www.greenmedinfo.com/blog/herbal-extracts-prove-combat-flesh-eating-bacteria

http://www.greenmedinfo.com/blog/herbal-antiseptic-oils-beats-chemical-inhibiting-superbug-infections

http://www.livestrong.com/article/26085-alcohol-affect-immune-system/

http://www.niaaa.nih.gov/alcohol-health/alcohols-effects-body

COMING UP ON HERB TALK LIVE

Herbalist Wendy Wilson on Herb Talk Live

Saturday morning show:

7 am EST on GCN

8/9/14 Dr. Rebecca Carley

Weekday show:

7 pm EST on AVR

8/19/14 Dr. Rebecca Carley

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.

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 support@thepowerherbs.com 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 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.