Discount Gold and Silver Trading

American Survival Newsletter:
Combining the World of Finance, Health & Politics
12/19/14

American Gold

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Edited by Alfred Adask
Friday, December 19th, A.D. 2014
 
MARKETS
 
Between Friday, December 12th, A.D. 2014 and 
Friday, December 19th A.D. 2014, the bid prices for:


 

Gold fell 2.3 % from $1,221.80 to $1,194.20

Silver fell 5.7 % from $17.04 to $16.07

Platinum fell 2.4 % from $1,225 to $1,196

Palladium fell 1.0 % from $812 to $804

DJIA rose 3.0 % from 17,280.83 to 17,804.80

NASDAQ rose 2.4 % from 4,653.60 to 4,765.69

NYSE rose 3.7 % from 10,500.50 to 10,890.30

US Dollar Index rose1.4 % from 88.32 to 89.59

Crude Oil fell 1.0 % from $57.49 to $56.91

 
 

"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

Grandmaster Putin's Golden Trap III?

 

by Alfred Adask

 

As I've written twice previously, Russian writer Dmitry Kalinichenko wrote an article entitled "Grandmaster Putin's Golden Trap".  I view that article as brilliant.  This will be my third and (probably) final commentary on Mr. Kalinichenko's observations.

 

Mr. Kalinichenko's article focused on what he believed to be Russian President Vladimir Putin's most brilliant financial strategy: buying gold with US fiat dollars.

 

On the face of it, that "strategy" doesn't sound like much. Buying gold with fiat dollars?   It's done every day. What's so brilliant about that?

 

Well, the brilliance (or just common sense) behind Putin's strategy is based on two fundamental premises:

 

1)    The fiat dollar is significantly overvalued and thus able to purchase more than it's really worth; and,

 

2)    The price of physical gold has been artificially suppressed and is therefore far lower than its true price would be in a "free" (rather than "manipulated") market.

 

If either of these two premises are true, it makes good sense to buy more gold. 

 

But, if both of these premises are simultaneously true, then President Putin (and anyone else who has access to fiat dollars) is virtually compelled to spend all the over-valued fiat dollars he acquires to purchase all the underpriced physical gold he can find. 

 

I.e., if both of these premises are true, it's like not only having physical gold's price fall to $500 an ounce at the same time you're allowed to purchase that gold with the "Monopoly money" that comes with the Parker Brothers game. 

 

If both premises are true, you've got be ignorant or crazy to not take advantage of the resulting buying opportunity.

 

Putin believes that these two premises are true and welcomes the rising purchasing power of the dollar and the falling price of gold. Therefore, Putin gladly accept over-valued fiat dollars for Russian crude oil and then uses those fiat dollars to purchase underpriced gold.

 

*  In A.D. 1971, President Nixon closed the "gold window" by declaring that paper dollars held by foreign entities and governments could no longer be redeemed with gold from the US Treasury.  Nixon's order reduced the paper dollar to a pure fiat currency.  The world didn't like the dollar's fall from "good as gold" (redeemable in gold) to a pure fiat, but generally speaking, went along with the change. 

 

 According to Kalinichenko, by accepting fiat dollars for crude oil and then quickly converting them into physical gold, Putin has effectively re-opened the "gold window" that Nixon closed. 

 

But that's an exaggeration.  Technically, given that that US Treasury is not directly redeeming the paper dollars with gold, they are still fiat dollars that are being redeemed indirectly by purchasing privately-held gold.  The US government still refuses to redeem those fiat dollars, but the modern Western world (based on fiat dollars) will exchange physical gold for fiat dollars.

 

Nevertheless, Kalinichenko thinks that strategy makes Putin a genius-a "grandmaster" of the games of geopolitics and international economics. 

 

I agree that Putin's strategy is both brilliant and obvious, but it's not as impressive as Putin helping to change the world's perception of the dollar from a final "payment" suitable for saving, to merely an intermediate means to receiving a real "payment" (gold).  Insofar as Putin's strategy helps the world to understand that the dollar is not really a "payment," the fiat dollar's value will decline and the dollar might even die.

 

*  Kalinichenko made additional observations concerning the current global conflict over crude oil, fiat dollars, Western sanctions on Russia, and gold. 

 

For example, although President Obama has previously declared that the United States is the world's one, "indispensable country," Kalinichenko argues that, today, Russia is the "indispensable country": 

 

"Not so long ago, British scientists came to the same conclusion as was published in a U.S. Geological survey a few years ago.  Namely: Europe will not survive without energy supply from Russia. That means: "The world [economy] will not survive if oil and gas from Russia is subtracted from the global balance of energy supply".

 

Kalinichenko implies that if the West's sanctions succeed in crippling the Russian economy, a resulting shut-down of Russian crude oil and natural gas production will:  1) cause the collapse of the energy-dependent European Union; and, 2) an EU economic collapse will trigger a global economic collapse.

 

Kalinichenko argues that, therefore: 1) under today's economic circumstances, Russia is the world's "indispensable country"; and 2) left unchecked, the West's sanctions on Russia are counter-productive since they may not only collapse the Russian economy, but also the EU and then global economies.

 

He continues:

 

"The Western world, built on the hegemony of the petrodollar, is in a catastrophic situation: it cannot survive without oil and gas supplies from Russia, but Russia is now ready to sell its oil and gas to the West only in exchange for physical gold!" 

 

How long Russia will continue to turn whatever fiat currency it receives for petroleum products into a gold "payment" remains to be seen.  Whether Russia will ultimately and openly demand gold for its crude oil also remains to be seen.

 

If Russia has found a way to be "paid" in gold for its crude oil, how many other oil-producing countries will also soon demand to be paid in gold?   In fact, how many others are already doing so?  If more oil-producing countries implement a strategy that allows them to be paid in gold, how many other nations, and then common people will follow?

 

More importantly, what will happen once the West's gold is largely gone and no longer available to be purchased by Russia, China and the BRICS nations with fiat dollars?  It seems certain that once fiat dollars can no longer be used to purchase Western gold, we'll see the value of the fiat dollar fall and the price of physical gold jump. 

 

But what else?  What would be the effect on the global economy if natural, physical resources like crude oil were primarily (only?) sold for physical gold?  Will the Powers That Be allow such a development?  Can they stop such development without collapsing the global economy or going to WWIII?

 

If Putin's strategy is brilliant, it's also dangerous to the world, and dangerous to Russia.  Will the Powers That Be allow Putin to continue to implement his strategy if the end result is the dollar's death?

 

*  Kalinichenko also offered insight concerning the "hidden costs" of gold price manipulation:

 

"Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. . . .  Today, assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar.  It is a consequence of the enormous economic effort on the part of the West." 

 

Kalinichenko argues that there's an "enormous economic effort" required to artificially support the fiat dollar and artificially suppress the price of physical gold.  That "effort" may not yet show up on any accounting ledgers, but is nevertheless too expensive to be indefinitely sustained.  Sooner or later, the West will be bankrupted by the "hidden costs" incurred by the effort required to artificially manipulate the values of fiat dollars and physical gold.  That "cost" ("hidden," for now) will be recognized when the US government is forced to admit that, in order to support the illusion of value in the fiat dollar, it had to secretly sell off virtually all of the US government's 8,200 tons of physical gold at artificially-suppressed prices.

 

Kalinichenko is simply reminding us that there's no free lunch.  The Powers That Be can't simply "wave a magic wand" to support the fiat dollar as if that support would be "cost-free". 

 

Market manipulation of the price of physical gold is achieved by means of trading "paper gold" in the markets and convincing investors that the price of "paper gold" and physical gold are identical. But, Kalinichenko reminds us that,

 

"For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. This equates to a ratio of trade of paper gold versus physical gold of 1000 to 1."

 

In the West's gold markets, there are 1,000 ounces of paper gold traded for every one ounce of physical gold actually delivered.

 

I can't say that a 1000 to 1 ratio of paper gold to physical gold necessarily means that the price of physical gold is likely to rise by a factor of 1,000 any time soon.  But, if that 1000 to 1 ratio is true, would it be irrational to predict that the price of physical gold would soon increase by a factor of 10?  20? Even 50?

 

That potential price increase is part of the significant "cost" ultimately incurred by manipulating markets to simultaneously over-value the dollar and underprice physical gold.  The primary and ongoing "cost" of this market manipulation is the loss of America's physical gold and the shift in gold ownership from West to East.

 

Because of that cost (loss of physical gold), if and when America needs gold, and the gold has been sold to support the fiat dollar, Americans will be bankrupted.  Big time.  The fiat dollar will die.  Chaos will reign.  Collapse is all but certain.

 

That chain of events provides a fantastic implication:  even after President Nixon closed the gold window in A.D. 1971, the fiat dollar has been implicitly backed by gold-not necessarily the US government's gold-but the gold of the Western World.  If so, for the past 43 years, the world has not accepted fiat dollars not because they were implicitly backed by petroleum, but because those dollars could be redeemed, somewhere, for physical gold.

 

If so, even now, the fiat dollar is backed by gold rather than petroleum. 

 

If that conjecture were true, it would follow that if West's gold supply dried up, the fiat dollar would die.

 

* Kalinichenko believes the dollar's doom is sealed:

 

"Using the mechanism of active withdrawal from the market of one financial asset (gold) artificially underpriced by the West in exchange for another financial asset (fiat dollars) artificially over-valued by the West, Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects."

 

Not so.  That "countdown" may have already begun, but Putin is not the first to realize that fiat dollars are over-valued and gold is underpriced.  Putin may be an excellent chess player, but he's not the "grandmaster" that Kalinichenko imagines. 

 

For at least a generation and possibly two, the dichotomy between the over-valued dollar and underpriced gold provided the mathematical and financial motivation for gold to flow from West to East.

 

During that time, the governments of Eastern and Middle-East countries have been selling their natural resources and human labor to the West in return for intrinsically-worthless fiat dollars.  Are we to believe that the East is populated and governed by a bunch of morons?  Or could we reasonably wonder if some sort of "secret deal" had been agreed to by the US, Saudi Arabia and OPEC whereby at least some percentage of the "petrodollars" received by oil-producing nations could be converted into physical gold at bargain-basement prices?

 

Did the "petrodollar" agreement secretly allow the oil-producing nations to redeem some of their fiat dollars for US gold?  Could that at least partially explain why the US gold treasury hasn't been fully audited for over 60 years?  Could such secret agreement underlie current suspicions that the US gold treasury (allegedly 8,200 tons) is already exhausted?

 

Probably not.

 

That speculation is a little too extreme, even for me.

 

But consider this:  SRSrocco recently published an article entitled "U.S. Gold Exports Jump 70% In September".  The author of the article researched the amount of physical gold actually exported by the US to foreign countries since about A.D. 1970.

 

He reports in part,

 

"I have to say, the more I research these older US Geological Survey Gold Yearbooks, the more fascinating data I uncover.  

 

"For example, in 1974, the U.S. exported 3.3 million ounces [about 93 metric tons] of monetary goldOf this amount, 2.58 million ounces of monetary gold [almost 80% of the total exported]were shipped to Saudi Arabia.  This is quite interesting due to the fact that the U.S. Arab Oil Embargo started in 1973.

 

"Furthermore, it's truly amazing how much gold the U.S. exported since 1971 . . . and this doesn't even include foreign gold held at the NY Fed."

 

The author admits that his research is preliminary and he draws no conclusions at this time.

 

Still, you have to admit that it's a little "odd" that 93 metric tons of gold were exported from the US to Saudi Arabia just a year or two after the Saudi's signed on to the petrodollar strategy, and a year after the onset of the US-Arab Oil Embargo.

 

(I'd like to see the tons of gold the US exported in the years before A.D. 1971 (when Nixon closed the "gold window") and compare those sums to the amount of gold exported from the US after the A.D. 1971.  Could it be that the rate of US gold exports actually increased after Nixon closed the "gold window"?  I'll bet it did. . . .  It's also interesting that the same year that Nixon closed the "gold window," under the guise of "Ping Pong Diplomacy," he also opened relations with China.  Prior to closing the "gold window," the US had the world's largest treasury of gold.  Today, some believe that China may hold the world's largest gold treasury.  Curious coincidences, no?)

 

In the improbable event that, in return for signing on to the petrodollar strategy, the Saudi's and OPEC were allowed to secretly withdraw 100 tons each year from the 8,200-ton US gold Treasury, that treasury would now be reduced to about 4,000 tons.

 

In the improbable event that the Saudi's and OPEC were allowed to withdraw 200 tons per year from the US gold Treasury, that Treasury would now be virtually empty. 

 

If this speculation were true, then the fiat dollar would've been secretly backed (and only for some oil-producing nations) by gold (rather than crude oil) even after Nixon closed the gold window in A.D. 1971.

Under this speculation, Putin's "brilliant, new strategy" isn't new at all, but was more-or-less implemented by the Saudi's and OPEC 40 years earlier.  If so, Putin is, again, not the genius Kalinichenko believes.

Even so, Kalinichenko correctly observed that,

 

"The problem for the West is that the stocks of physical gold in possession of the West are limited.  Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses physical gold from its limited reserves."

 

"The Western world has never faced such economic events and phenomena that are happening right now.  The former USSR rapidly sold gold during the fall of oil prices.  Today, Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination."

 

I suspect that Russia not only poses a "real threat" to the US but also to the New World Order's "petro-currency world domination".  If so, we can expect the US and/or the New World Order to try to destroy Russia.  That means massive economic sanctions or nuclear war.

 

I'm not predicting that a third world war is imminent.  I'm only observing that, logically, some people in positions of power in the US and/or N.W.O. must be contemplating that possibility and weighing their chances of launching a surprise nuclear attack on Russia.

 

More, if it's true (as Kalinichenko previously claimed) that Europe (and even the western world) can't survive without Russian petroleum, the idea of nuking Russia won't be well-received by European allies since it would constitute an act of self-destruction for the EU and even the world economies.

 

Would the US government be willing to destroy Russia or at least collapse its economy to save the fiat dollar if the results included a collapse of the EU economy?

 

If the gov-co thought they could get away with it, the answer must be Yes.

 

*  Kalinichenko argues that,

 

"Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin's economic gold trap.

 

"But everyone in the West is silent about itbecause no one knows now how to get out of this situation."

 

Kalinichenko doesn't say so, but his analysis at least implies that:

 

1)    Today's fiat dollar is called the "petrodollar" because, since the early 1970s, it has presumably been "backed" by the world's crude oil.  Any nation that wanted to purchase crude oil from Saudi Arabia and OPEC had to "pay" with fiat dollars.  Since crude oil could only be purchased with fiat dollars, there was a global demand for intrinsically-worthless fiat dollars.  That demand created a perceived value for the fiat dollar.

 

2)    However, the fiat dollar may have actually been supported by the supposedly sacrosanct 8,200 tons of gold held in the US Treasury-or by privately held gold in the Western World.  If so, the post-1971 fiat dollar was secretly supported by America's and/or the West's supply of physical gold.  Could it be that, all the while that government called gold a "barbarous relic" and disparaged its value, gold still (secretly) provided the ultimate support for the illusion of fiat dollar value? 

 

3)    If so, and if (when) the US and Western World run out of gold (not out of petroleum or even the fiat dollar's status as "World Reserve Currency"), the price of gold will skyrocket and the fiat dollar may die.

 

Kalinichenko concludes his article with, "This is called 'Checkmate,' ladies and gentlemen. The game is over."

 

It remains to be seen if Kalinichenko is right. 

 

But, if the "game" is over, what's next

 

Could it be something more serious, even more deadly, than a "game"?

The Federal Reserve is edging closer to raising interest rates from record lows given a strengthening U.S. job market and economy.

 

But it will be "patient" in determining when to raise them. That was the message that emerged Wednesday as the Fed ended a policy meeting and Chair Janet Yellen held a news conference amid heightened expectation about the Fed's timetable for a rate increase.

 

The central bank said in a statement that a "patient" approach to raising rates is consistent with its previous guidance that it expected to keep its key rate near zero for a "considerable time."

 

The average price of a pound of ground beef climbed to another record high -- $4.201 per pound -- in the United States in November, according to data released today by the Bureau of Labor Statistics (BLS).In August 2014, the average price for a pound of all types of ground beef topped $4 for the first time, hitting $4.013, according to the BLS.  In September, the average price jumped to $4.096 per pound, and in October, the average price climbed to $4.154 per pound. In November, the average price hit the highest price ever recorded -- $4.201 per pound.

 

     A year ago, in November 2013, the average price for a pound of ground beef was $3.477 per pound. Since then, the average price has increased 20.8 percent in one year.

 

     Five years ago, in November 2009, the average price of a pound of ground beef was $2.062, according to the BLS. The price has since climbed by $2.139 per pound, or 103.7 percent.

 

Plunging gasoline costs caused U.S. consumer prices to drop in November, muting inflation across the entire economy.

 

     The Labor Department said Wednesday the inflation reading fell a seasonally-adjusted 0.3 percent last month, after prices were flat in October. Gas costs plummeted 10.5 percent in November, the steepest decline in nearly six years.

 

    Core inflation, which excludes volatile energy and food prices, rose 0.1 percent in November

 

China manages an economy with less momentum and Russia copes with its collapsing currency. But U.S. consumers have largely been insulated from these pressures and benefited from less expensive oil.

 

Average gas prices nationally have dropped to $2.53 a gallon from $2.89 a month ago and $3.23 a year ago. Cheaper gas frees up income to be spent elsewhere, often helping to support other sectors of the economy.

 

The rouble plunged more than 11 percent against the dollar on Tuesday in its steepest intraday fall since the Russian financial crisis in 1998 as confidence in the central bank evaporated after an ineffectual rate hike.

 

     The rouble opened around 10 percent stronger against the dollar after the central bank unexpectedly raised its benchmark interest rate by a hefty 650 basis points to try and halt the currency's slide, but it reversed gains in volatile trade and repeatedly set new record lows.

 

     It has now fallen close to 20 percent this week, taking its losses this year against the dollar to more than 50 percent and stirring memories of the 1998 crisis when the currency collapsed within a matter of days, forcing Russia to default on its debt.

    

 

Ford fell nearly 5% Monday on reports of a downgrade from a Deutsche Bank analyst.

It was one of the worst performing stocks in the S&P 500.

 

China's holdings of U.S. Treasuries fell to a 20-month low in October, as yuan appreciation indicated less of an impetus to buy the government securities.

 

China held $1.25 trillion in U.S. debt as of October, a $13.6 billion drop from September, the Treasury Department said in a monthly report today. The nation remains the largest foreign holder, ahead of Japan, whose stockpile increased $0.6 billion to $1.22 trillion, reducing the gap between the two countries to the narrowest since September 2012.

 

China's foreign-exchange reserves, the world's biggest, stood at $3.89 trillion at the end of the third quarter, official figures show. That's down from a record $3.99 trillion at the end of June, when reserves were boosted by China's current-account surplus and dollar purchases.

 

China's economy slowed in November as factory shutdowns exacerbated weaker demand, raising pressure on the central bank to add further stimulus. Bloomberg's gross domestic product tracker came in at 6.78 percent year-on-year in November, down from 6.91 percent in October and a fourth month below 7 percent, according to a preliminary reading.

 

Russia's economy is crashing and its currency appears to be in free fall.

 

The ruble plunged by about 12% Monday, meaning it's lost nearly 50% against the dollar this year.

 

Cash is flooding out of the country and the risk that some Russian companies may default is increasing.

 

Russia's central bank has raised interest rates five times this year, and spent nearly $90 billion trying to defend the ruble and prevent prices spiraling out of control.

 

The Bank of Russia said Monday that the country could sink into a deep recession next year if oil prices remain at $60 a barrel. GDP could contract by as much as 4.7% in 2015, and then by a further 1.1% in 2016 unless oil prices pick up.

 

One of the biggest losers from the roughly $50 a barrel drop in oil prices in the last six months is the U.S. Energy Department itself.

 

The Energy Department owns nearly 700 million barrels of oil it has stored underground in locations around the country, making up what is known as the Strategic Petroleum Reserve.

That huge supply of oil held by the government has lost about $35 billion in value since June.

 

The government says it paid an average of about $30 a barrel for the oil it holds, so the oil is still worth more than it cost. Oil was trading at just over $56 a barrel Monday.

 

Six years after the collapse of Lehman Brothers, the lessons of the financial crisis may already be fading from collective memory.

 

Just last week:

 

- Congress acted to loosen the regulation of the high-risk investments that ignited the 2008 crisis.

 

- Housing regulators cut minimum down payments on home loans.

 

- The Institute of International Finance declared it "worrisome" that global indebtedness, as a share of world economic output, has reached record levels.

 

All this comes as subprime auto loans for financially stretched buyers are surging. And the so-called too-big-to-fail banks that needed a taxpayer bailout in 2008 now loom even larger than before the crisis: America's five biggest banks account for 44 percent of bank assets, up from 38 percent in 2007, according to SNL Financial.

 

Congress voted last week to weaken a rule intended to reduce risks to taxpayers. Under the 2010 Dodd-Frank financial regulation bill, banks had to separate their federally insured banks from their riskiest trading operations - the ones that deal in derivatives.

 

Derivatives are used by farmers and companies to hedge financial risks. But they also let traders speculate on bonds, currencies and commodities such as oil. Bad bets in the derivatives market sank American International Group, an insurer that needed a $185 billion taxpayer bailout. The Dodd-Frank provision was meant to limit the risk that banks would use federally insured deposits to gamble on derivatives.

 

But last week, at the behest of bank lobbyists, the House slipped into a must-pass spending bill a repeal of the divide between traditional banks and derivatives trading. Banks say the move will preserve their ability to help farmers and businesses hedge against risks.

 

Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., called the repeal "illogical." He noted that Dodd-Frank didn't prevent banks from trading derivatives and servicing farmers and businesses in operations not backed by federal deposit insurance. The 2008 crisis, Hoenig said, exposed "the economic consequences of conducting derivatives trading in taxpayer-insured banks."

 

 

Mortgage giants Fannie Mae and Freddie Mac issued guidelines last week allowing Americans to buy homes with down payments as low as 3 percent, down from the current 5 percent minimum. The new guidelines are meant to make houses more affordable for low-income families and first-time buyers.

 

But critics worry about a repeat of what happened in the early and mid-2000s: Families were encouraged, through low down payment requirements and loose credit standards, to buy homes they couldn't afford. Millions wound up in foreclosure.

 

The Institute of International Finance, an industry research group, warned last week that global debt, excluding debt held by banks, had reached a record 244 percent of worldwide economic output.

 

Companies in emerging markets such as China and India have been issuing bonds in record amounts, many of which must be repaid in U.S. dollars. If interest rates and the U.S. currency rise - and the dollar has surged over 10 percent against major currencies since the end of June - those companies may struggle to meet payments or refinance their debt.

 

U.S. regulators are warning about slipping credit standards for auto loans. The rating agency Standard & Poor's expects lenders to make $21 billion in subprime auto loans this year, up from $20 billion this year and $18 billion in 2013.

 

Repeating what they did before encountering trouble in 2008, automakers and finance companies are offering six- and seven-year loans to ease buyers into cars they otherwise couldn't afford.

 

"We tend to forget financial history," said Frank Partnoy, a finance professor at the University of San Diego.

 

 

Millions of Americans are working harder than ever just to keep from falling behind; Today, a shrinking share of Americans are working middle-class jobs, and collectively, they earn less of the nation's income than they used to. In 1981, according to the Pew Research Center, 59 percent of American adults were classified as "middle income" - which means their household income was between two-thirds and double the nation's median income. By 2011, it was down to 51 percent. In that time, the "middle" group's share of the national income pie fell from 60 percent to 45 percent.

 

For that, you can blame the past three recessions, which sparked a chain reaction of layoffs and lower pay.

 

Millions of American jobs disappeared during the 1990, 2001 and 2008 recessions: jobs that companies could easily outsource overseas or replace with a machine.

 

The average two-parent American family earned 23 percent more in 2009 than it did in 1973, after adjusting for inflation. That's because people in those families are working more hours - 26 percent more than in 1973 on average. Take away the extra time on the job and wages haven't gone up at all for the median family in more than 40 years, even though workers have grown more productive.

 

Economic research shows a thriving middle class fosters entrepreneurs and economic mobility - the places with the largest middle classes are also the ones where it's easiest for children who grow up poor to climb out of poverty as adults.

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HEALTH

The Mucous War


 
by Herbalist Wendy Wilson


Claim your free herb gift a $20 value, details below.

 

We are in the middle of winter when cold and flu viruses circulate at a fever pitch. If you ask people what they hate most about being sick you will get different answers. Some can't stand the headache or achy muscles. Others don't like the upset stomach. However, most will agree that the most challenging symptom is the mucous. We might not like dealing with the mucous the body produces when sick however it does serve an important purpose, which is to protect various organs from contaminants such as the intestines, nose, urinary and lungs. When sick mucous makes people run to their doctor or drugstore for decongestants. The decongestants can reduce the amount of mucous but it can make it harder on the body to deal with infections. A better way is to work with the body and instead of drying up the mucosa with drugs, use herbs to help expectorate the mucous and the infection.   If you are tired of colds and upper respiratory infections which drown you in a sea of mucous, then let's take a look at some natural was to remove it and get well.

 

DIFFERENT KINDS OF MUCOUS

The good mucous is not the kind of mucous that will keep you up at night coughing up a lung. The good mucous is a living force made up of water, salt, sugars, glycoprotein and other cells. This kind of mucous is a living very thin, clear layer and acts like a filter to prevent pollutants from invading tissue and irritating organs. This is another layer of your immunity. For example, the layer of mucous that lines the nasal passage helps to trap impurities such as; mold, dust, pollen, smoke particles, pet dander and more. These particulates get trapped in the mucous, protects your respiratory system from inflammation and the particles are disposed of when you blow your nose.

 

THE MUCOUS EVERYONE HATES

No one wants this kind of mucous but the body will respond to infections sometimes with a tsunami of mucous. The mucous produced when you are ill is composed of waste materials and sits on top of mucous membranes and accumulates. This kind of mucous is a dead, low-vibrating substance, which is often eliminated with great effort. This kind of mucous can also be brought about by unhealthy lifestyles and smoking. Modern medicine states that unwanted mucous is the result of disease and natural healers state that disease can be caused by unhealthy forms of mucous. Actually, natural healers say that over 90% of all disease is caused by infected mucous. Infectious mucous is thick and can be all kinds of colors; clear, white and foamy, yellow, green, brown and black. When the nasal passages swell preventing adequate circulation of air, the mucous builds up, becomes thick and develops a distinct foul, odor. Mucous from pneumonia will also be thick, colored, will have an odor and is often referred to as sputum.

 

MORE MUCOUS INFO

Mucous can be interesting as well as disgusting. Without an illness, the human body will produce a cup of nasal mucous per day. This mucous is necessary to lubricant the nose, nasal passages and throat. Put crudely, if your nose has boogers it is a sign that your nose is functioning properly. Similar to saliva, your body is always producing the living kind of mucous. If visiting a medical doctor, the color of mucous will determine if you are prescribed medication. If the color is a rusty or brown color it indicates the presence of the pneumonia bacterium and antibiotics are prescribed. If it is yellow or green it could indicated the presence of puss from a sinus or bronchitis infection and antibiotics are prescribed. If the sputum is white or has a milky or opaque appearance it indicates a virus and antibiotics will not be effective.  Natural healers also know that excessive and continuous mucous in the body (frequent sinus, URI and bouts of pneumonia) puts people at risk of a partial decomposition of the blood plasma. The result is a nutritional shortage of potassium chloride, which enables fibrin (protein) to remain in the blood (important for clotting). Foods which put the natural potassium chloride back into the system are; apples and apple cider vinegar.

 

A SLIMY BODYGUARD

The body will use mucous to protect you from an infection spreading throughout the system. The mucous although mainly waste product is also comprised of leukocytes (white blood cells). Leukocytes are Greek for "white". The moment the mucous becomes infected with waste, viruses or bacteria it is attacked by the immune system's leukocytes. These immune cells are made in the bone marrow with the red blood cells for blood. Our bodies make five different types of leukocytes and they live for about four days. Our body will tap into the power of these white blood cells to protect our glands and lymphatic system. When your immune system detects disease, it will flood the blood with 7,000 leukocytes for every ¼ teaspoon of blood. If your infection is from bacteria or fungi the body will launch the neutrophil leukocytes. If your disease involves the release of histamine to deal with inflammation the body will select the basophil leukocyte (your allergy hay fever leukocyte). If you have a viral infection the body will release the lymphocyte leukocytes which have extra killer T-cell macrophages.

 

MOVING MUCOUS

If you have lots of mucous and prescriptions are not required or you don't want to use antibiotics; how can you help your body decongest the mucous?  There are several things you can do to work with your immune system. The mucous is there to prevent the spread of a threat. The invading particulates or disease is encapsulated in the mucous. It is our job to help expel it. For phlegm in the throat I like to use organic apple cider vinegar to cut through it and either cough it out or pass it through to the digestive tract. Some like to mix the vinegar with honey. Another remedy is to mix tomato juice, onion juice and garlic juice together and drink to cut the thick mucous. There are many decongestant herbs and foods that are very effective at moving the mucous out of the body such as; mullein, comfrey, chickweed, slippery elm and licorice. However, my favorite herb to help move mucous is real hot cayenne. Think about it, when you eat spicy, hot foods your nose runs and fluids move. Cayenne moves mucous fast. You can use a combination of different herbs to move the mucous and also soothe tissues that are inflamed and irritated. For bronchial and chest congestion, I will combine cayenne with peppermint leaf and lobelia tinctures to dilate the respiratory system and get more power behind the cough to dislodge the mucous. When we deal with infections this way we allow the immune system to code antibodies to kill the infection and therefore we will be less vulnerable the next time we encounter that pathogen.

 

HEALTH PEOPLE SECRETS

You probably know someone who seems to never catch a cold or flu bug. I call them "the healthy ones." What do they know that you don't to stay healthier than the average person? If you ask healthy folks how they manage to evade illness they will tell you they stay away from sugar, they do regular exercise, they avoid stress, they don't smoke or drink excessive alcohol and they don't eat out much. One key most health experts agree on is exercise to improve the circulation. When circulation is enhanced it delivers more protection from illness because the immune system is enhanced. You've heard that "blood brings healing" and it also protects and helps to prevent illness by circulation more antibodies to screen the system of unwanted pathogens. Organ cleansing will also help to guarantee the blood is clean of unwanted waste material including too much glucose and cancer cells.  "The healthy ones" will also use food and whole food supplements that offer more antioxidants, minerals and vitamins. And they make sure they get enough sleep and strive to maintain healthy relationships.

 

DO YOU TEI-FU?

There are also oils that we can tap into to help shrink swollen passages and help cleanse them of pathogens. I like to use this combination oil called Tei-Fu. It combines safflower seed oil, menthol mint leaf oil, camphor from cinnamon bark, wintergreen leaf and bark oil, eucalyptus leaf oil, lavender flower oil and clove bud and leaf oil. This stuff is amazing at opening up the nasal passages to help you breathe easier. You put a drop of the oil into the palm of your hand and rub your palms together, cup your hands over your nose and mouth and breathe deeply. This is excellent for allergies, asthma, URI, whooping cough, bronchitis and pneumonia.    

 

COMMON COLD OPTIONS

Most of the winter colds are viral and not influenza. If you have a viral infection the doctor will send you home with some OTC recommendations and an excuse from work or school. Don't fret because you have natural tools you can use to move the mucous and power up your immune system and clear the mucous and virus away. If you use apple cider vinegar to cut the phlegm you'll love this powerful formula that also includes immune boosting herbs called All-In-One at Apothecary Herbs. For a natural anti-inflammatory see their Pain Anti-Inflammatory tincture. For the URI see the Echinacea Deluxe (with hot cayenne to clear sinuses). For decongestant see their Pneumonia Kit (with a natural decongestant) and you can upgrade it. You can combine these formulas with American Ginseng (speeds pathogen removal), Astragalus root (more immune support) Thyme Tinctures (calms coughing) all for more power. Also available is the Lung Congestion Kit (includes Tei-Fu oil) and several organ cleanse products online at http://www.thepowerherbs.com., where your healthcare options just became endless. Call Apothecary Herbs 866-229-3663, International 704-885-0277 because if you're serious about herbs you need Apothecary Herbs. New 15th Anniversary Product Catalog available the end of December 2014 - call now to reserve your copy. 


 

HOLIDAY SCHEDULE:  Apothecary Herbs will be closed 12/25/14 and 1/1/15. Orders received by 12 noon EST on 12/24/4 will ship that day if items are in stock. We will be open 12/26/14. See our online coupon offers on the Herb Medicine Option page (HMO). Claim your holiday FREE Gift (Astragalus Root 1 oz.) with you order of $50 or more now through 12/31/14. Use Coupon: FREEG14. To activate code add Astragalus root 1 oz to cart. A $20 value.

 

Sources:

http://www.webmd.com/cold-and-flu/features/secrets-super-healthy-people

 

COMING UP ON HERB TALK LIVE

Herbalist Wendy Wilson on Herb Talk Live

Saturday morning show:

7 am EST on GCN

1/10/15 Dr. Rebecca Carley

Weekday show:

7 pm EST on AVR

1/20/15 Dr. Rebecca Carley

Shortwave show 8 pm EST WWCR 4840

Go to http://www.thepowerherbs.com 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 at http://www.thepowerherbs.com.

 

NEW HMO COUPONS at Apothecary Herbs 866-229-3663 www.thepowerherbs.com

Click on the green HMO button on top left on web site. Cut and paste coupons in your cart and save. These coupons expire the end of January 2015.

 

HMO1 Free US Ground Ship on orders of $50 to $199 (US only excludes Alaska, Hawaii, Virgin Islands & Porto Rico)

 

HMO2  Free Power Herbs e-bookwith purchase of $200 to $499 (Must put Power Herbs e-book in cart for discount to apply)

 
HMO3  10% off purchases of $500 to $1,000.

 

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

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

 

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

 

NEW DANDELION ROOT LIQUID

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

 

HERB KITS EXTEND YOUR FIRST AID KITS

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

 

PURE ZINC ENERGY

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

 

DETOX PRODUCTS

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

 

BE PREPARED

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

 

ALLERGY RELIEF

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

 

APOTHECARY HERBS VITAMIN VAULT - STOCK UP AND SAVE!

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

 

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


 

STARTER KIT & ONE-YEAR SUPPLY OF HERBAL MEDICNE (shelf life 10 to 15 years) See Apothecary Herbs One Year Supply of Herbal Medicine at http://www.thepowerherbs.com or call 866-229-3663, 704-885-0277. Call for a customized year supply or to set up installment payment for this package.

The information contained herein is not designed to diagnosis, treat, prevent or cure disease. Seek medical advice from a lincensed medical physician (if you dare) before using any product or therapy. 
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