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American Survival Newsletter:
Combining the World of Finance, Health & Politics
2/6/15

American Gold

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Edited by Alfred Adask
Friday, February 6th, A.D. 2015
 
MARKETS
 
Between Friday, January 30th A.D. 2015 and 
Friday, February 6th A.D. 2015, the bid prices for:


 

Gold fell 3.9 % from $1,283.10 to $1,233.30

Silver fell 3.1 % from $17.23 to $16.69

Platinum fell 1.4 % from $1,238 to $1,220

Palladium rose 1.7 % from $769 to $782

DJIA rose 3.8 % from 17,164.95 to 17,824.29

NASDAQ rose 2.3 % from 4,635.24 to 4,744.40

NYSE rose 2.9 % from 10,537.20 to 10,847.50

US Dollar Index fell 0.2 % from 94.84 to 94.65

Crude Oil rose 9.7 % from $47.71 to $52.34

 
 

"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

Negative interest rates caused by deflation?

 

by Alfred Adask

 

 

Speaking of the Swiss chocolate giant Nestle', Mike "Mish" Shedlock wrote ("Nestle' Has First Ever Negative Interest Corporate Bond") that:

"Economic madness continues nonstop. In the race for safe havens, Nestle' bond yield has fallen below zero. 

 

 "Nestle's short-term euro-denominated bond yield has fallen into negative territory, possibly marking the first time in history that a corporate bond maturing in more than a year has had a negative yield.

 

"Yes indeed folks, you can now pay Nestles for the privilege of lending it money."

 

Get that?  If you lend euros to Nestle', they'll only accept your loan if you pay them for the privilege of lending them your currency.

 

Nestle's new policy isn't exactly a first.  Several European banks have already imposed negative interest rates on bank depositors.  But Nestle may be first major corporation to issued bonds with negative interest rates.

 

Of course, on the face of it, paying negative interest rates sounds nutty.  But are negative interest rates really evidence, as Mish Shedlock said, of the "Privilege of Lending Gone Mad"?

 

I don't think so.

 

I suspect that negative interest rates anticipate deflation.  Just as inflation allows borrowers to repay their debts with cheaper dollars, deflation requires borrowers to repay their debts with more expensive dollars

 

Thus, if you lend currency to Nestle during a period of inflation, Nestle will repay its loan with currency that has a diminished purchasing power. For example, in an era of inflation, I could lend $1 million to Nestle', and when Nestle' repaid the $1 million, it might only have the purchasing power of $900,000.  By means of inflation, I (the lender) would lose $100,000 in purchasing power, and Nestle' (the borrower) would be gain by $100,000 in purchasing power.

 

On the other hand, if I loaned $1 million to Nestle' during an era of deflation, Nestle' would be forced to repay that loan with currency that was "more expensive" (had a higher purchasing power) than the currency originally borrowed.  I.e., when Nestle' repaid the loan in three years, the $1 million they borrowed might have $1.1 million in purchasing power.  Result?  Due to deflation, I (the lender) would gain an unearned $100,000 in purchasing power and Nestle' (the borrower) would lose $100,000 in purchasing power.

 

Nestle' didn't get to be one of the world's greatest corporations by playing the fool.  If Nestle' sees that we're entering an era of deflation, Nestle' will not accept loans that will cause them to lose purchasing power.

 

Therefore, to offset the possible losses incurred by the borrower (Nestle') due to deflation, Nestle' is imposing a negative interest rate.  Nestle' is charging interest on the money it borrows because Nestle' anticipates deflation, economic depression, and being forced to repay whatever currency it borrows with "more expensive" euros, dollars, etc.  Nestle' is charging a negative interest rate to offset the losses in purchasing power they might otherwise suffer due to deflation.

 

Negative interest rates sound nutty, alright-but they make perfect sense in our brave new world of fiat currencies, economic depression and monetary deflation.

False assumptions

 

by Alfred Adask

 

The US Dollar Index (USDX) is an economic indicator that measures the purchasing power of the US fiat dollar in relation to six other fiat currencies.

 

According to Wikipedia:

 

"The US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies.

 

"It is a weighted geometric mean of the dollar's value relative to [six] other select [fiat] currencies:

 

"Euro (EUR), 57.6% weight

 

"Japanese yen (JPY) 13.6% weight

 

"Pound sterling (GBP), 11.9% weight

 

"Canadian dollar (CAD), 9.1% weight

 

"Swedish krona (SEK), 4.2% weight

 

"Swiss franc (CHF) 3.6% weight

 

"USDX goes up when the US dollar gains "strength" (value) [purchasing power] when compared to other currencies.

 

"USDX started in March 1973, soon after the dismantling of the Bretton Woods system. At its start, the value of the US Dollar Index was 100.000. It has since traded as high as 164.7200 in February 1985, and as low as 70.698 on March 16, 2008."

 

The USDX is like a teeter-totter.  The fiat dollar sits on one end of the teeter-totter; the other six fiat currencies sit on the other end.  When the value of the US dollar rises (deflates), the average value (purchasing power) of the other six currencies fall (inflate).  When the average value of the other six currencies rise, the US dollar's value (purchasing power) falls.

 

You might suppose that a strong dollar (one of rising purchasing power; deflation) is good and a weak dollar (one of falling purchasing power-inflation) is bad.  You'd be wrong (at least from the perspective of our government).  In our brave new world of global free trade, fiat currencies compete for lower purchasing power (inflation) since that decline will foster rising exports from their country, tend to produce more jobs and stimulate their economies.  Therefore governments and central banks compete to cause inflation and reduce the value of their nation's currency.

 

Additionally, an overly-indebted government (like that of the US--the world's biggest debtor) should be determined to cause inflation (decline as measured on the USDX) to allow it to repay its enormous debt with cheaper dollars.  Inflation effectively diminishes the true size (purchasing power) of the US national debt.  Thus, the US government should have a vested interest in a lower number on the USDX

 

On the other hand, deflation (rising currency value) is anathema to debtors since if forces them to repay their debts in more valuable dollars.  Deflation can push many debtors into bankruptcy and thereby precipitate a national depression.  The US government should fear and hate deflation since it effectively increases the true size (purchasing power) of the US national debt and also predisposes the US economy to slide into a depression.

 

Therefore, for the past eight months, I've been fixated by the astonishing rise in the value of the fiat dollar as measured by the USDX.  During that time, the dollar's value (purchasing power) has risen from 79 (May, A.D. 2014) to over 95 in the past week.  That's a 20% rise in the purchasing power of the dollar in just eight months.

 

That rise has been celebrated by average Americans because it's helped drive the cost of gasoline down under $2 per gallon.  But that same rise should've been cursed by the US government because it has effectively increased the value of the US national debt by 20%.   Yes, the national debt is still (nominally) $18 trillion.  But, in terms of purchasing power (as measured by the USDX) the national debt is now closer to $21 trillion as compared to the national debt in May of A.D. 2014.

 

Government, which has pushed steadily for 2% annual inflation throughout most of the 70 years since WWII, has allowed 20% deflation in a period of eight months.  In theory, that 20% deflation may have wiped out ten years of previous inflation.

 

I'm shocked.

 

No, seriously.  I'm shocked.

 

For me, this deflation has signaled an incomprehensible reversal in US monetary policy.  Given our overly-indebted government's vested interest in causing dollar inflation (to allow gov-co to repay its debts with "cheaper" dollars), why would it allow 20% dollar deflation over a period of eight months?

 

Maybe our government has cut a deal with the European Union and Japan whereby the dollar's value will go up (deflate) while causing the "teeter-totter" values of the euro and yen to fall (inflate).  That kind of deal would tend to stimulate the EU and Japanese economies and perhaps prevent them from sliding into national or even global depressions.

 

But, at what price?!

 

Riding the USDX teeter-totter, if our government allows the dollar to deflate by 20% in order to save the EU and Japanese economies, that level of US deflation could push the US economy into a depression.

 

Even if the US economy is strong enough to withstand any deflationary forces that might push us into a depression, the fact remains that be allowing 20% deflation of the US dollar, the US government has effectively increased the value (purchasing power) of the US national debt by 20%.

 

Why would gov-co risk increasing the national debt by 20%?  They must know that doing so will only make it harder for gov-co to repay existing debt and might even force the gov-co to admit it's bankrupt.

 

So, given my limited knowledge of economics, it's seemed incomprehensible to me that government would allow 20% deflation on the USDX over the past eight months..  Incomprehensible.  Bewildering. Mind-boggling.

 

*  But as I thought about this mysterious contradiction between what government is doing (allowing 20% deflation) and government's need to inflate the dollar so as to pay off its debt with cheaper dollars--it crossed my mind that perhaps one of my assumptions was mistaken.

 

For years now, I've simply assumed that government wanted inflation, needed inflation, depended on inflation, for the primary reason of repaying its debts with cheaper dollars.  Inflation reduced the value of dollars and thereby reduced the value of debts.  The US government is the world's biggest debtor.  The logical implication seemed unassailable.  Government had a vested interest in inflating the dollar so as to repay the debt with cheaper dollars.  Therefore, I assumed government would foster inflation rather than deflation.

 

Government had a vested interest in causing inflation in order to reduce the actual size of the national debt. Government would not act contrary to its own best interests.  Therefore, I assumed that government would persist in causing inflation to 1) stimulate the economy; and 2) make it easier to repay its debts with cheaper (inflated) dollars.

 

Conversely, I assumed that government would never, never allow US dollar deflation because it would: 1) push the US economy closer to depression; and 2) make the national debt that much harder to repay.

 

However, all of my seemingly "unassailable logic" was based on a fundamental assumption:  The US government intends to maintain the lie that it can and will repay the national debt.

 

Given that assumption, the US would inflate dollars forever, if that's what it takes to seemingly repay the national debt.  "QE to infinity," right?  Conversely, the government would never allow deflation since deflation would expose the lie and collapse the pretense of repaying the national debt.

 

But what if my assumption (that government would inflate endlessly in order to seemingly repay its debts with cheaper dollars) was wrong?

 

What if government had secretly decided, "Screw it--we're not going to repay all or even most of the national debt"?

 

Then, the presence or absence of deflation would be largely irrelevant to the size of the national debt. What difference does it make if the national debt increased by 20% or not, if the debt is about to be repudiated?  What real difference would it make if deflation increased "official" national debt from $18 trillion to $21 trillion (or even $200 trillion) if anything over 20% of the nominal debt was about to be repudiated?

 

All of my earlier "logic"--and my shock at the last eight months of deflation--were based on the assumption that the US government would continue to try to repay all or most of the national debt.

 

If that assumption were false, the last eight months of deflation wouldn't be at all shocking--in fact, it might be logical and predictable

 

I.e., many people who are about to go bankrupt and about to repudiate some or all of their debt, ask if they'd rather repudiate $100,000 in debt or $1 million?  If bankruptcy is inevitable, is it true that you might as well relax and enjoy it?  In fact, shouldn't you make your bankruptcy as large as possible by increasing the amount that you owe?  Lots of people say Yes.  It's immoral to exploit bankruptcy, but people do it every day.  Sometimes governments do the same.

 

In any case, what difference would any amount of deflation make to the government, if the US were to repudiate $18 trillion, $21 trillion, or $200 trillion?  If all or most of the debt is about to be repudiated, what does it matter if deflation makes that debt is small, medium or humongous?

 

Similarly, if the debt were about to be repudiated in full, what need would there be for inflation to repay the debt in cheaper dollars?

 

*  So, am I predicting that the US government is about to declare bankruptcy and repudiate all of the national debt?

 

No.  I'm not yet going that far.

 

I''m simply saying that: while the past eight months of unchallenged deflation on the USDX:  1) seems "logically" inconsistent with the past 70 years of inflation as a device to reduce the national debt; 2) it does seem "logically" consistent with the possibility that government is planning to openly default on much or all of the national debt within, say, the next twelve months.

 

So--which presumption is true?  That the US government::  1) intends to maintain the charade that it will someday, somehow repay the national debt; or 2)  that the US government (like Greece, incidentally) is about to admit that the national debt can't be paid in full and thereby openly repudiate some or all of that debt?

 

If you can tell me which of those two presumptions is currently true, I might be able to tell you what's about to happen to the US economy.

 

P.S.  If the US government knows that it's about to repudiate some or all of the national debt, will that repudiation take place unilaterally?   Or would it merely be one part of a global "reset" that cancelled the "sovereign" debts of virtually every nation's government?

 

Is that the real implication of the US government's willingness to allow the past eight months of deflation on the USDX?  Does this deflation signal that a global "reset" is fast approaching?

China's gold imports rising

 

by Alfred Adask

 

 

In the final two weeks of January, China ratcheted up her imports of gold to 70 tons and 71 tons.  If they sustained that rate for a year, they'd import 40% more gold than the world produces

 

This tells us that China's most recent rate of imports can't be sustained-and leaves us wondering why are they ramping up imports just now?  Have they decided to dump some of their dollars?  Do they expect the price of gold is about to rise significantly, so they're buying all the "cheap" gold they can acquire?

 

 At the buying rampage seen in the last half of January, China's purchases of gold might be described as almost desperate.

 

Does Chinaknow something is about to happenthat will cause gold to become increasingly scarce and valuable?

   

*  In the last two weeks of January, China imported six times more gold than the COMEX claims to have as deliverable inventory! 

 

If China's appetite for gold remains as insatiable as seen by purchasing 70 tons a week for the last two weeks of January, we can suppose the world markets may soon be almost devoid of gold and China may therefore decide to raid COMEX in order to acquire whatever gold remains in the COMEX vaults.

 

In theory, at the most recent buying rates, China could destroy COMEX by simply demanding to take delivery of COMEX physical gold for three days.

 

This suggests that the COMEX gold market could soon be relegated to extinction as they may have no product available for delivery. 

 

But will China actually destroy COMEX?

 

Probably not.

 

Why?

 

Because COMEX doesn't really have much gold for for China to seize.  But COMEX still performs the vital function of suppressing the price of gold on a global scale that helps China to purchase 70 tons of gold per week at irrationally low prices.  So long as COMEX paper-gold can help hold down the price of physical gold, COMEX is helping China.  China will not attack any entity that, on balance, helps China.

 

China has a vested interest in allowing COMEX to survive, so China will not destroy COMEX and seize whatever gold remains in COMEX, until COMEX can no longer serve China's interests.  If COMEX loses its ability to suppress the price of gold, China will jump into the COMEX market and try to capture whatever gold remains. But, so long as COMEX paper-gold can and does suppress the world price of physical gold, China's policy towards COMEX should be "hands off!"

 

In the meantime, a "two tier market" might develop wherein we see large down days on the COMEX price of paper-gold at the same time we see huge up days in the prices of physical gold as traders begin to recognize the true dichotomy between paper gold and physical gold.

 

If we do, COMEX's days should be numbered.  Once COMEX fails to suppress the price of physical gold, China should jump into COMEX and seize whatever scraps of gold are still in the COMEX vault.

 

But, what's that dichotomy between paper- and physical-gold?

 

 It's this:  Paper gold is nothing but a "promise to pay".  Physical gold is an actual payment.

 

Do you want to work for promises?  Or do you want to work for payments?

 

Do you want to be paid in promises?  Or do you want to be paid in payments?

 

Do you want to invest in "promises to pay"?  Or do you want to invest in "payments"?

 

Once you begin view your investments in terms of "promises to pay" vs. "payments," your investing choices can be significantly simplified-and you should begin to see clearly why physical gold is vastly superior to paper gold.

 

*  What might it be that China thinks is "about to happen" to cause China to purchase so much gold?

 

Maybe it's a sovereign debt "reset" where some or all of the world's governments simply agree to cancel some or all of their existing "national debts".

 

Over the past 8 months, the dollar's purchasing power rose almost 20% as measured on the USDX.  That rise is evidence of deflation.

 

Deflation is anathema to debtors since it compels them to repay their debts with more valuable dollars and thus drives debtors towards bankruptcy and economies towards depression.

 

The US government is the world's biggest debtor.  As such, the US government has the world's most powerful interest in causing inflation and preventing deflation.  Nevertheless, the US government has allowed deflation to manifest itself on the USDX over the past 8 months and made no significant effort to stop that deflation

 

Yes, the dollar has fallen significantly on the USDX over the past week. But it remains to be seen if that one-week fall is a temporary aberration or correction that will soon give way to the previous 8-months-long bull market for dollars. 

 

While we wait for more data, government's 8-month long failure to stop USDX deflation seems incomprehensible since deflation actually increases the value (purchasing power) of the national debt.  Deflation makes the debt bigger.  Why would a government that's already unable to pay the national debt, effectively allow that debt to grow even larger?

 

The only way that government's failure to prevent USDX deflation makes sense to me is if the government knows that it will soon repudiate some or all of the national debt.  If the national debt is about to be repudiated, deflation makes no difference. 

 

*  Q.  What difference does it make to any debtors if the dollar's value is rising or falling-if his debt is about to be repudiated?

 

A.  None.

 

Suppose I owed you $1,000.  If I'm going to repudiate that debt, what difference does it make if those thousand dollars are each valued at ten cents or at one ounce of gold?  If my debt is about to be cancelled, the value of each dollar is irrelevant.

 

Government's seeming tolerance for deflation seems incomprehensible only if we assume that our overly-indebted government still intends to try to repay its national debt. 

 

But if the government has already decided to cancel the debt, deflation is irrelevant.

 

*  IF it were true that the US government planned to repudiate its debt before, say, the end of A.D. 2015--would the US government act unilaterally?  Or would the government act in concert with rest of the world's debtor-governments to cause a "sovereign debt default"? 

 

I doubt that the US would act unilaterally.  I'd bet other nations would also cancel their debts at the same time in a "global reset".

 

I'm not predicting that a "global sovereign debt reset" is about to take place.  But I am saying that that's the only scenario I can currently imagine that would justify our government's apparent willingness to tolerate deflation.

 

*  If China knew or believed that such a "global sovereign debt default" was imminent, China would know that all of the fiat dollars (which are nothing but paper promises to pay) that are stored in China's treasury would soon be worthless.  If so, it would be incumbent on China to convert as many of its fiat dollars (promises to pay) into "payments" (gold) as was humanly possible.

 

Under that scenario, China's recent weekly purchases of 70 and 71 tons of gold would make perfect sense.

GREECE MEETING: Greece remains a key focus in financial markets as the new Greek government tries to forge a deal on the country's debts with its partners in the 19-country eurozone.

On Friday, it was confirmed that finance ministers of the so-called Eurogroup are to hold a special meeting next Wednesday to discuss Greece's debts, a day ahead of a summit of European Union leaders. Greek shares were down Friday amid ongoing jitters over how the discussions will pan out. The Athens stock index fell 3 percent.

OIL REBOUND: Oil prices extended their gains Friday, with the benchmark New York rate up $1.09 at $51.62 a barrel. Brent, the international standard, was up $1.60 at $58.19 a barrel.

BONDS: U.S. government bond prices fell and yields rose as investors anticipated that strong jobs report could mean higher interest rates and faster economic growth. The yield on the 10-year Treasury note rose to 1.89 percent from 1.81 percent

Meanwhile, the obedient faithful do their best to keep Hope alive while reaping the benefits of Change:

"Kids, I know you miss our annual trip to Walt Disney World but you understand how the Affordable Care Act means we have to use that money to pay our much higher health insurance premiums which are going to be higher every year from now on, even though we voted for President Obama twice. When they shut down the coal-fired power plant in a few months, your Uncle Steve will be out of work and we'll see bigger electric bills, maybe twice as much, but we all have to do our part to protect Mother Earth because the president's huge carbon footprint is our carbon footprint, too.

And don't forget that Dad's about to lose his job to an H-1B visa holder and Mom's already training the DREAMer who's going to replace her at work, even after we both took pay cuts to keep our jobs and help stimulate the recovery. This is what President Obama means when he says amnesty, comprehensive immigration reform and guest worker programs are good for the middle class, good for the economy and good for America. But like Nancy Pelosi reminds us: If your hours are cut at work, it's 'a liberation' and it gives you 'the freedom to pursue your happiness'. That means we'll have all the freedom we deserve!"

A little-noticed proposal in President Barack Obama's $4 trillion budget would eliminate the Overseas Private Investment Corporation, which has been the subject of an Associated Press investigation into its overseas loans, and merge it for efficiency with five other federal business and trade agencies

 

Under the proposal, the combined agencies would fold into a single new department with a name focused on economic growth and job development. It would affect the Commerce Department's core business and trade functions - the Small Business Administration, Office of the U.S. Trade Representative, the Export-Import Bank and U.S. Trade and Development Agency.

 

OPIC finances more than $3 billion a year in developments across the world, and was the subject of an AP investigation over projects in Liberia, Mexico and Chile.

 

 An aborted $217 million power project in Liberia was marked by insider connections, questionable oversight, environmental damage and allegations by employees about sexual abuse and workplace hazards, the AP found.

 

OPIC has no independent internal watchdog, and its accountability office has issued reports on just five deals since 2005, a period when OPIC approved more than 530 projects worldwide.

 

OPIC, which focuses on foreign development, is different from the other agencies, which are mostly focused on trade. "There's always the danger of watering down the rules and policies of one institution when you merge it with others," he said.

 

DECISION DOWN UNDER: The Reserve Bank of Australia cut its benchmark interest rate by a quarter of a percentage point to a record low of 2.25 percent in an attempt to revive the country's economy, which is being weighed down by falling commodity prices.

 

 

Mexican remittances rebound in 2014, up 7.8 percent

MEXICO CITY (AP) - Remittances sent home by Mexicans living abroad rebounded by 7.8 percent last year after falling in 2013, Mexico's central bank said Tuesday. Mexicans abroad sent home $23.6 billion in 2014, up from about $21.9 billion the year before. Remittances had dropped 3.7 percent in 2013 from the previous year. Remittances are among Mexico's main sources of foreign income, along with oil exports. Almost all of the remittances come from the more than 11 million Mexicans living in the United States, making the health of that country's economy key to what is sent back to Mexico. "The remittances don't depend on the exchange rate, nor on business opportunities in Mexico, but rather completely on the condition of the U.S. economy," Alfredo Coutino, Latin America director for Moody's Analytics, said in an email.

 

 

(Bloomberg) -- Hedge funds are the most bullish on gold in more than two years, betting the metal's allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion.

 

Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.

 

Gold prices in January capped the biggest monthly gain in three years. Policy makers in Europe and Asia are adding to stimulus as they battle cooling growth, boosting the appeal of alternatives to currencies that are being revalued. Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates.

 

 

Obama sends record $4 trillion budget to Congress: Tax hikes for rich, help for middle class

 

Obama's budget, which will set off months of wrangling in Congress, proposes spending $4 trillion - $3.999 trillion before rounding - in the 2016 budget year that begins Oct. 1. That's a 6.4 percent increase over estimated spending this year

 

In a message accompanying the massive budget books, Obama said his proposals are "practical, not partisan

 

"The president is advocating more spending, more taxes and more debt," said House Speaker John Boehner. "A proposal that never balances is not a serious plan for America's fiscal future."

 

The budget documents reveal that all the tax increases will total $2 trillion, including a number of proposals Obama has made before to limit deductions the wealthy can take to reduce their tax bill.

 

Wealthy people would only be able to take tax deductions at the 28 percent rate even if their income is taxed at 39.6 percent and would also see an increase in their maximum capital gains rate to 28 percent instead of 24.2 percent.

 

All told, Obama proposes higher receipts of about $2 trillion in his budget: about $1.5 trillion come from tax increases and almost $500 billion from fresh revenue as immigration changes lift the economy and provide new workers.

 

Among those benefiting from Obama's proposed tax cuts would be couples earning up to $120,000 a year who would qualify for a new "second earner" credit of up to $500 as well as a maximum $3,000 child care credit for two children, triple the current $1,000.

 

Not all of Obama's tax hikes would hit the wealthy. His budget also proposes to raise $95 billion over the next decade by hiking the tax on cigarettes from the current $1.01 per pack to $1.95.

 

Obama's spending plan would ease tight budget constraints imposed on the military and domestic programs back in 2011 when lawmakers were responding to the public outcry over deficits that were then topping $1 trillion a year.

 

Obama's budget calls these caps, known as sequestration, "mindless austerity." The elimination of the budget caps this will boost spending by $74 billion - divided between the military and domestic programs - in 2016 and would result in a spending increase over the remaining six years the caps were to have been in place of $362 billion.

 

Obama's budget projects a deficit of $583 billion in 2015, up significantly from last year's $485 billion imbalance. Obama's budget plan never reaches balance over the next decade and projects the deficit would rise to $687 billion in 2025.

 

Obama's budget also called also is calling for a $60 billion program for free community college for an estimated 9 million students if all states participate. It also proposes expanding child care to more than 1.1 million additional children under the age of 4 by 2025 and seeks to implement universal pre-school.

He also is trying to impose a 0.07 percent fee on the roughly 100 U.S. financial companies with assets of more than $50 billion.

 

 

The Obama budget calls for a stealth increase in the death tax rate from 40% to nearly 60%. Here's how it works:

Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent's original basis. Almost always, the fair market value is higher.

Under the Obama proposal, when you inherit an asset your basis will simply be the decedent's original basis.

Example: Dad buys a house for $10,000.  He dies and leaves it to you. The fair market value on the date of death is $100,000. You sell it for $120,000. Under current law, you have a capital gain of $20,000 (sales price of $120,000 less step up in basis of $100,000). Under the Obama plan, you have a capital gain of $110,000 (sales price of $120,000 less original basis of $10,000).

"The national death tax dates to World War I. Most states have abolished their state death tax. They know the death tax is simply yet another layer of taxation on the life savings of Americans," said Grover Norquist, president of Americans for Tax Reform. "Heck, Sweden abolished its death tax a decade ago. The world has learned from failure and moved on. Obama thinks he is being left-wing.  He is just showing his age."

Read more: http://www.atr.org/obama-budget-creates-second-death-tax#ixzz3QcUOlnB9

Follow us: @taxreformer on Twitter

 

 

AGRICULTURE Up 3 percent A new food safety agency. Highlights:-The budget proposes consolidating the Agriculture Department's Food Safety and Inspection Service with the Food and Drug Administration's food safety oversight in a new agency under the Health and Human Services Department. If Congress goes along with the proposal, USDA would lose one of its main functions.- As in years past, the administration is proposing to cut money for farmers' crop insurance to pay for other agriculture programs.

 

Food stamps alone are estimated to cost $83.7 billion for the 2016 budget year. Though fewer people are expected to apply for food stamps in the coming years, food prices are expected to keep the cost higher.The numbers:Total spending: $156 billion, including spending on farm subsidies and nutrition programs already required by law.Spending that needs Congress' annual approval: $24.4 billion_

 

COMMERCE  Down 12.8 percent

 

Obama's Commerce Department budget proposes a new Scale-Up Fund, designed to help new startup companies develop technologies that can be manufactured in the U.S.-Obama would expand a network of manufacturing institutes around the country from nine to 45. The institutes are designed to coordinate the federal government's work with local companies and schools to develop technologies that the U.S. can produce.-

 

 

Census Bureau ramps up slightly as the agency prepares for its once-every-decade count of America's population.

 

Total spending: $12.4 billion. While programs approved annually by Congress would grow by 11 percent, other Commerce spending shows a decline, including funds that get money from the Federal Communications Commission's sales of space on the electronic spectrum.

 

DEFENSE Up or down? Up 4.4 percent What's new? The highest base budget in history, and the lowest spending on war costs since 2002.Highlights:-Military leaders say they are still reeling from the sharp budget cuts and flat spending of the last several years, which curtailed training, and maintenance and forced deep cuts in the size of the Army.-The proposed budget calls for investment in a broad range of weapons systems, aircraft and ships, along with increased spending on cybersecurity, and other advanced technologies, such as high-energy lasers. The plans include $10.6 billion for 57 Joint Strike Fighters, $11.6 billion for nine new ships; $1.4 billion for submarine development, $1.2 billion for a new long-range bomber and $3.4 billion for 16 P-8 Poseidons, which conduct anti-submarine warfare.-Warning of a maturing long-range missile threat from North Korea and the potential threat from Iran, the Pentagon is asking for $9.6 billion for missile defense.-The budget includes a 1.3 percent raise for service members and department civilians, but seeks changes in health care costs, including requiring retirees who are 65 or older to pay a small annual health care fee.-The war funding would pay for continued counterterrorism operations in Afghanistan and efforts to advise Afghan forces. It also would fund counter-insurgency operations in Iraq, Syria and other hot spots around the globe.-Despite persistent opposition from Congress, the Pentagon is seeking another round of military base closings in 2017 and is asking to retire the A-10 Warthog attack aircraft. The numbers: Total spending: $585 billion. The request calls for a base budget of $534 billion, an increase of 7.7 percent over this year. The war funding request of nearly $51 billion is a 21 percent decrease.

 

EDUCATION Up or down? Down 24.3 percent. A proposal for free community college. Highlights:-Obama wants to make two years of community college free and as easy to access as high school. To do so, he would give grants to states that agree to make tuition free to students who meet certain conditions, if those states contribute to the effort and seek to improve the quality of their community colleges. The budget seeks $1.4 billion for the effort. Overall, the program is estimated to cost $60 billion over 10 years. The proposal has received a cold reception from many Republicans on Capitol Hill, however.-Obama has long emphasized expanding and improving early education programs. One effort is to use a tobacco tax increase to make preschool available to all low-and moderate-income 4-year-olds at a cost of $1.3 billion next year, or $75 billion over 10 years. The budget also seeks $750 million for preschool development grants to states to expand access and improve quality of early education programs, meant to lay the groundwork for universal pre-K. Such a grant program is already assisting 18 states with the effort, but the budget seeks $500 million more.- Obama also seeks $1.5 billion in new spending by the Health and Human Services Department for Head Start programs - money that would help make Head Start available for a full day and all year for some children and expand services for expecting parents and very young children. Congressional Republicans, however, have pushed to improve existing federally funded early childhood programs before dramatically expanding them.- The budget would provide a $1 billion increase in Title 1 funding, meant to close inequities in education.The numbers:Total spending: $73.8 billion.

 

ENERGY Up or down? Up 13.8 Calls for reforming nuclear waste disposal by establishing an interim disposal site. Highlights:- Obama proposes a new approach to deal with the nation's nuclear waste storage at power plants by starting what would be a decade-long, roughly $5.7 billion effort. The plan would establish an interim storage site for the waste now distributed at 72 commercial nuclear power plants across the country. Republicans are already gearing up to revive Yucca Mountain, a long-term storage site in former Majority Leader Harry Reid's home state of Nevada that was tabled by the administration. In 2010, the Energy Department withdrew its application to the Nuclear Regulatory Commission, prompting lawsuits and congressional inquiries that it was out of compliance with the law.- Obama proposes across-the-board increases in the research and development of renewable energy sources, including solar, wind and geothermal energy, and advanced vehicle technologies such as electric cars and advanced batteries.- Adds $38 million toward development of carbon capture and storage, a technology that will be essential to meeting the Obama administration's proposed requirements to cut carbon dioxide emissions from new power plants.- Establishes a new program aimed at developing technologies to reduce and to monitor emissions of methane in natural gas production, a potent greenhouse gas.- The Energy Information Administration, responding to the changing energy landscape, would increase the data it assembles, including monthly movements of crude oil transported by rail and monthly estimates of electricity generated by small-scale renewable energy sources, such as solar panels on homes and buildings.The numbers:Total spending: $29.2 billion

 

ENVIRONMENTAL PROTECTION AGENCY Up or down? Up 55.6 percent A $4 billion fund for use by states that cut the pollution blamed for global warming from power plants deeper and faster than required. Highlights:- After cutting the Environmental Protection Agency's budget for years, Obama is proposing the largest increase to the agency's budget of his presidency, as he doubles down on plans to curb the pollution blamed for global warming. But look for Republicans, now in control of Congress, to whack the EPA budget.- Obama's proposal includes $239 million for the EPA to address climate change, including the marquee rules due this summer to cut heat-trapping pollution from new and existing power plants. About $25 million is set aside for states to help them draft plans to meet the power plant rules. Numerous states have already sued the agency over its plans, and have complained that meeting the proposal will be complicated and burdensome.- For the first time, the EPA budget establishes a $4 billion fund for use by states that cut pollution blamed for global warming at power plants deeper or faster than required. But that proposal would require Congress to find an offset to pay for it. That's unlikely with congressional Republicans aiming to dismantle the EPA's climate efforts.- With several chemical, coal and oil spills tainting water supplies recently, Obama's budget also includes $50 million for the EPA to help assist states, tribes and private companies to upgrade drinking water and sewer systems. The budget also calls for $2.3 billion in low-interest loans and grants to communities to make improvements in drinking water and sewage treatment and infrastructure.

 

HEALTH AND HUMAN SERVICES Up or down? Up 4.3 percent Medicare could negotiate prices for cutting-edge drugs.

 

HOMELAND SECURITY Up or down? Up 9.1 percent An extra $8.2 million to improve White House security.- The request for new spending for security improvements at the White House.

Obama also seeks to spend up to $162 million more next year to help handle potential increases in the number of unaccompanied children caught crossing the border from Mexico illegally. Customs and Border Protection would get up to $134.5 million more, depending on how many children are caught crossing illegally. Immigration and Customs Enforcement, which transports children caught crossing the border illegally, would get up to a $27.6 million increase.-The proposed CBP budget also includes $373 million to buy and maintain technology and tactical infrastructure along the Southwest border. Improving border security remains a sticking point for Republican lawmakers amid the ongoing debate over changing the country's complicated immigration laws.

 

HOUSING AND URBAN DEVELOPMENT Up or down? Up 10.3 percent An unusually large jump in spending would restore about 67,000 vouchers used by the poor to pay for housing. HUD has been among the federal departments hardest hit by spending cuts in recent years. Highlights:- Seeks $500 million for a new program designed to help communities hit by hurricanes, flooding or other natural disasters to become more resilient to future disasters.- Seeks to more than double spending to $248 million for "choice neighborhood grants," which communities can use to improve housing stock, transportation and other services for distressed neighborhoods with high rates of poverty.- Seeks about $2.5 billion for a wide range of programs dedicated to helping the homeless. The proposed funding would continue what has been a steady increase in resources geared to getting the chronically homeless into permanent housing.- Seeks a reduction in mortgage insurance premiums that would enable 250,000 new homebuyers over a three-year period.The numbers:Total spending: $48.35 billion, including $7.3 billion in spending already required by law.Spending that needs Congress' annual approval: $41 billion._

 

INTERIOR Up or down? Up 21.9 percent More than $1 billion to mark the centennial of the National Park ServiceHighlights:- The budget includes $859 million in new spending to mark the centennial of the National Park Service in 2016 by upgrading services and facilities at national parks throughout the country. It also proposes $150 million for "challenge grants" to leverage private donations to parks.-The budget again floats new fees and other regulatory reforms to increase revenue from oil and gas production on federal lands and waters. Officials say the reforms would generate $5.6 billion over 10 years and expedite drilling on public lands and water, but the ideas are strongly opposed by industry and have made little headway in Congress

 

JUSTICE Up or down? Basically flat  Purchasing body-worn cameras for local, state and tribal law enforcement.Highlights:- The proposed budget includes $15 million for programs and research aimed at countering violent extremism, an initiative the Justice Department has tied to mounting concerns about the flow of foreign terrorist fighters to Iraq and Syria. The proposal would create a new grant program and fund partnerships between law enforcement agencies, residents and community groups. Attorney General Eric Holder says the effort is necessary both to break up potential terror plots and to understand the root causes of radical ideologies.-The budget also calls for spending to address a problematic backlog of immigration cases. It would provide $482 million to hire 55 immigration judge teams and also provide legal representation to more than 30,000 unaccompanied minors.- The budget would invest $146 million to expand re-entry and recidivism programs in the Bureau of Prisons, including increasing mental health staff and providing cognitive behavioral treatment.- The budget would expand pre-trial diversion programs for non-violent offenders in keeping with Holder's "Smart on Crime" initiative.

 

SEC and CFTCUp or down? Both go up  More staff to administer post-crisis financial regulations. Highlights:- The Securities and Exchange Commission's budget would increase by 15 percent, and the Commodity Futures Trading Commission's budget would rise 29 percent.- The large increases reflect attempts by the Obama administration to fund financial industry regulatory reforms put in place after the 2008 financial crisis. But it's far from certain the agencies will see all that money - similar increases requested in the past were only partially approved by Congress.- Both agencies say they lack the staff to implement the full range of financial regulations mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and both would devote much of their increased resources to adding personnel. The CFTC alone would add 169 employees.-The CFTC, which is charged with policing the market for hundreds of trillions of dollars' worth of futures, derivatives and other complex financial products, would increase its information technology budget from $50 million to $79 million. Major banks far outstrip that, spending tens of billions of dollars each year on technology.

 

TRANSPORTATIONUp or down? Up 31 percent  A plan to tackle an estimated $2 trillion in deferred maintenance for the nation's aging infrastructure by boosting highway and transit spending to $478 billion over six years.  Highlights:- The six-year highway and transit plan would get a one-time $238 billion infusion from the general treasury. Some of the money would be offset by taxing the profits of U.S. companies that haven't been paying taxes on income made overseas. That infusion comes on top of the $35 billion a year that normally comes from gasoline and diesel taxes and other transportation fees.- The proposal also includes tax incentives to encourage private investment in infrastructure, and an infrastructure investment bank to help finance major transportation projects.- The new infrastructure investment would be front-loaded. The budget proposes to spend the money over six years and pay for the programs over 10 years.- The proposal also includes a new Interagency Infrastructure Permitting Improvement Center to coordinate efforts across nearly 20 federal agencies and bureaus to speed up the permitting process. For example, the Coast Guard, Corps of Engineers and Transportation Department are trying to synchronize their reviews of projects such as bridges that cross navigation channels.

 

VETERANS AFFAIRSUp or down? Up 3.3 percent Billions in new spending to improve veterans' medical care. Highlights:-The budget includes $60 billion to improve veterans' medical care, a 7.4 percent increase over current spending. The additional money was authorized by the 2014 Veterans Access, Choice and Accountability Act, adopted by Congress and signed by the president in response to a scandal over long wait times at VA medical centers and false appointment records to cover up the delays. VA health care enrollment is projected to reach 9.4 million in 2016, up from 9.3 million this year.- Continues a department-wide reorganization known as MyVA, an effort to refocus the agency around the needs of veterans.- Includes $7 billion to expand and improve mental health services.-

 

_Associated Press writers Mary Clare Jalonick, Alan Fram, Lolita Baldor, Kimberly Hefling, Dina Cappiello, Eric Tucker, Ricardo Alonso-Zaldivar, Alicia Caldwell, Kevin Freking, Matthew Daly, Seth Borenstein, Jeff Horwitz, Joan Lowy and Connie Cass contributed to this report.

Real Faith or no Faith - That is the Big Question for America

 

BY LAURIE ROTH ADMIN, ON JANUARY 7TH, 2015

 

NEW SHOW TIME

LAURIE ROTH

Monday-Friday

10:00 AM-1:00 PM PACIFIC

 

With all Obama's Saul Alinsky tricks, chaos and UN Constitutional actions, will he be able to confront and stop the real power and force of most Americans - our Christian faith? Can he with his teller prompter charm intimidate us to drink the Obama cool aid and join his hell bent cult? Many Americans have joined and many others stand at the door shaking in fear, forgetting who the real God is and who the real enemy is. Most of us however have walked...no run away from Obama. We know whom the real God and source of hope and change and it ain't Obama.

We can clearly see that Obama is following the damned path of all dictators. He must control our health care and use this to force deaths upon the undesirables, elderly and his enemies. Obamacare was designed to fail, cull the heard down, terrify, anger and hurt Americans so they will run right into the prison of Government - single payer health care.

Obama also must control our guns. Only yesterday I interviewed Constitutional Attorney Michael Connelly on my national radio show, who just said that the latest push by Obama and John Kerry is to slam the UN Gun Treaty down our throats whether we, the House or Senate likes it or not. Our Constitution plainly says that an international treaty of any kind cannot be made law in America unless we have a 2/3rds majority vote in the Senate. We simply don't have that.

Now, Obama is saying that we have miss-interpreted the Constitution and it means that he can implement this treaty and demand gun registrations in advance regardless of a vote by the Senate. He says what it really means is that it will take a 2/3rds Senate vote to stop him after he has already pushed it on us.

The House and Senate must quickly wake up and grow some guts. Obama is boldly coming for our guns and plans to do so void of any vote, law or reason. Dictators must have our guns. Will this coming demand for national registration create the uprising that Obama wants? Will this bring marshal law so he can go past forced registration and go door-to-door demanding all guns? Imposing an illegal UN Treaty on Americans like this will quickly turn tens of millions into instant criminals because they will not comply.

House and Senate listen up. This one action by Obama, daring to force national gun registration down our throats is beyond an impeachable offense. Our House and Senate cannot allow his lawlessness regarding our gun and privacy rights to stand. Our new House and Senate must impeach Obama and soon before he forces a grab for America's guns.

I hardly feel confidence with the new House having voted John Boehner back in as speaker for a 3rd term with all of his many compromises and failures in leadership. Regardless, the House and Senate cannot allow this illegal treaty to be forced down our throats if we want a country left in tact.

Obama must also redefine and gut real religion, namely Christianity. He can't have us drawing on our Lord Jesus for strength, power and direction. There is only room for one god and it is him. If he can't get us all to believe that Jesus was just promoting social justice and pushing that all paths to God are the same, then he must demonize and destroy real Christians. We have seen this religious 'double speak' since the beginning of his fraudulent rule.

Obama rewrites laws and religion as he goes. It is up to Americans and our newly elected House, Senate and Governors to know and stand by our real Constitution, real laws and our real God - The Lord Jesus Christ.

Do Americans and Christians have any power to really take on evil? Remember what God did for the very desperate Asa in 2 Chron. 14:11, who was facing a million man army and 300 chariots against his very small group of Israeli soldiers. He sought God and trusted Him for His help and he got it. It was as if the boy scouts were taking on the Nazi party. The Bible tells us that as the Israelis walked forward they saw that the enemy were all dead. All that was left to do was to pick up the spoils, food and wealth. God and His mighty angles took care of business. Remember our God is not about common sense or reflective of our limitations. He is also not controlled by those who say they are His but are not.

It is time for America to really turn to our Lord Jesus - to trust, listen and obey. We will be just fine. God is in control, not Obama or anyone else. Now, lets keep in regular prayer for our lives and country and keep on our House and Senate to confront Obama.

HEALTH

Buyer beware

 

by Herbalist Wendy Wilson


 

More news reports have surfaced about Big Medicine or Big Pharma and its involvement in the supplement industry. According to Steven Mister, president of Council for Responsible Nutrition, the pharmaceutical industry is moving more supplement products in volume than non-pharmaceutical supplement manufacturers. Wyeth makes Centrum vitamins, Bayer makes One A Day and the other pharmaceutical firms (GlaxoSmithKline, Unilever and Novartis) are pushing their neutraceutical brands of supplements. Recently (2/3/15) the Attorney General of New York ordered Wal-Mart, Walgreens, Target and GNC to stop selling their private label supplements as nearly 80% of them did not contain the ingredients listed on the label (known as adulterated or mislabeled). What do consumers need to know about the private labeled supplement industry? Let's take a look.

 

THE NICHE PLAYERS

The niche players are the smaller supplement firms and there are hundreds of them and they usually have a limited product offering of just a few items. These companies comprise a small sliver of the supplement pie, which has grown into the billions of dollars. When these small companies, which usually manufacturer their own brands, grow to a mid-size operation they are snatched up by the larger, pharmaceutical companies. The products are then made by the pharmaceutical company in facilities where drugs are produced or they are farmed out to private label ingredient suppliers. This explains why a brand you may have trusted for years suddenly does not perform as before.

 

BIG PILL COMPANIES

According to Dr. Todd Cooperman, president of ConsumerLab.com, the bigger a supplement company is the more they have to lose and if their products do not contain the ingredients listed on the label it can be costly. However, the bigger they are the harder they fall. Jana Hildreth with Analytical Research Collective says that just because the supplement company is big does not mean they produce a superior product. They often obtain their bulk ingredients from overseas in developing countries to reduce their costs and this affects quality. Jana says, "They're going to demand lower prices and with the prices they demand come lower quality." The executives running the large supplement firms know that they can reap billions on the products, and any legal ramifications or fines they may pay will not compare to the profits. This is also a philosophy of the pharmaceutical industry.

 

THE INGREDIENT SUPPLIERS

If you do a little digging you will find that many of the big private labeled supplement companies find a generic ingredient supplier using an array of supplement ingredients (chemicals, fillers, plants etc.) and they select a recipe the supplier has in stock or they custom make one. Many of the same supplement chemical recipes are made for hundreds of companies and are private labeled to chain stores. These are multi-million dollar ingredient firms that sell product all over the world. If you have watched the show Undercover Boss you'll notice that the guy at the top is out of touch with the people and production of their product or offering. This is also how it is with big supplement companies. They will shop for the cheapest ingredient supplier to make their products for them and have no vested interest in nutrition or health whatsoever. It is all about the bottom line. As we are seeing at the big supplement stores (GNC, Wal-Mart, Walgreens and Target) their products are either made overseas or the ingredients are imported and are padded with fillers such as rice and waste grains, which cause allergic reactions. Weather these companies know their products are junk is yet to be discovered. I think they already do know because you get what you pay for. According to reports, the private labeled brand names under investigation are Wal-Mart's Spring Valley, Walgreens Finest Nutrition, GNC's Herbal Plus and Target's Up & Up. GNC was obviously outraged having to remove its brand from the shelves and stated that the testing methods used by the NY Attorney General may not have been appropriate. They used a DNA barcoding technology, which is according to Michael McGuffin, president of American Herbal Products Association, is an emerging technology and should be confirmed with established analytical tools (chromatography or microscopy). It also appears that the NY Attorney General (Eric Schneiderman) did not notify these retailers ahead of the public announcement and this could be misconstrued as a political stunt disguised by a public health issue. We will see how it plays out.

 

WHO MAKES THESE?

I did some digging into who is making these products sold at the stores the Attorney General of NY is investigating. I was not surprised at what I found. Many of these supplements distributed by the big chain stores are made by many different manufacturers including pharmaceutical companies. On Dr. Weil's Vitamin Advisor, I found that the Wal-Mart's Spring Valley supplements have been private labeled for Wal-Mart since 1999 and are made by several companies; Nature's Bounty, Schiff Nutrition Group, Leiner Health Products and Robinson Pharma (www.Robinsonpharma.com). Wal-Mart assures customers that their vitamin line is made in the US; however some of their ingredients are imported from China or Taiwan. It appears that the GNC Herbal Plus, Walgreens Finest Nutrition and Target's Up & Up are all private labeled products which could all be made by the same manufacturer or if they are different manufacturers they could be getting their ingredients from the same supplier who may be buying from overseas to lower costs.

 

THE NANNY VITAMINS

Presently, manufacturers and distributors of supplements are responsible for the content and labeling of their products. Some people feel this is a perfect example why the supplement industry needs to be reformed and tightly regulated by government. If that occurs there will be only pharmaceutical-grade supplements made by big pharma. It would turn whole-food supplements into chemical synthetics for standardized consistency. You will pay more for a low quality, unnatural product as the cost associated with regulations will be added to the retail price. ConsumerLab.com rates supplements sold on a large scale. The private labeled supplements sold at Wal-Mart, GNC, Target and Walgreens did not make their best list. This is a good example of bigger is not always better.

 

SECRET TO SUCCESS?

I once saw a best-selling author interview on TV who was asked what makes a best-selling book. The author did not say it was character development, a good plot or any of the elements that goes into writing a fine book. Instead the author said one word, "Marketing." So, according to the author it matters not if you are selling Gone With the Wind or a romance paperbacks because it all comes down to good marketing. It would seem that is case with the private labeled junk supplements and pharmaceutical nutraceuticals sold in stores. I look at nutraceuticals as a "neutral nutrient". The term neutraceutical was coined in 1989 and its main purpose is a marketing tool. The proper definition of nutraceutical is a mixture of a food or part of a food and chemistry-speaking it usually is neither acidic nor alkaline. Neutraceuticals are heavily processed, isolated and purified chemical elements from organic sources. However, the FDA does not have a legal definition for organic or natural. It is referred to in marketing as a functional food rather than a vitamin supplement. It is a product that is marketed to the percentage of the consumer market that is first and foremost looking for supplements that taste good and after taste they look at nutrition and health benefits. Neutraceuticals are not chemically different from pharmaceutical drugs because they do not retain their original balance of nutrients from the sources they are taken from. They are a combination of nutrients in the percentages that are not normal in nature. According to All American Pharmaceutical they formulate and design the nutrition instead of nature. They may start with raw materials but they process it to standardize it for fast replication. Nutraceuticals are also referred to in the industry as nutrabiotics and is a new form of medicine. There are marketing campaigns promoting nutraceuticals as anti-aging products but they are really drugs mixing food sources with pharmaceuticals. The only way a nutraceutical differs from a pharmaceutical drug is that it does not require clinical trials, which is why the pharmaceutical industry is involved in the first place. Check out this quote:

 

"A nutraceutical is a product isolated or purified from foods that is generally sold in medicinal forms not usually associated with food. As like drugs, there should be strict regulatory controls over nutraceuticals also. It is favored that a new category of dietary supplements called 'nutraceuticals' be established with the FDA in which they can be administered at doses that exceed normal human exposure to these elements in foods." Research Journal of Pharmaceutical, Biological and Chemical Sciences

 

The pharmaceutical industry is making synthetic versions of these isolated food chemicals and is intended to replace the organic form. They have already succeeded in replicating the antioxidants. Buyer beware, these are no longer foods but drugs.

 

WHO DO YOU TRUST?

It all comes down to whom you trust with your food and supplements. A China company called Taoyen & Trend Company wanted to acquire www.thepowerherbs.com and make the name their net brand. I told them to take a hike at which time they spammed my web site and email. I got into the herbal supplement business because of personal reasons and I saw the powerful benefit of God's herbs. I wanted to learn more and share that with others. My focus is making superior, high quality herb products and I've been told my price reflects that. The supplement industry is changing and how long I'll be in it is up to God. The more the consumer knows about the supplement industry the better protected they will be when selecting products. I wish everyone to be well and if I can help in a small way, I praise the Lord. If you would like to learn more about Apothecary Herbs and empower yourself then call for a free product catalog 866-229-3663, International 704-885-0277 or online http://thepowerherbs.com, because if you are serious about herbs you need Apothecary Herbs. Don't forget to check out their coupon HMO page http://www.thepowerherbs.com/herbs/Herb-Medicine-Options-HMO.html and SAVE!

 

Sources:

http://www.foxnews.com/story/2009/06/10/many-vitamins-supplements-made-by-
big-pharmaceutical-companies/

http://www.foodsafetynews.com/2015/02/major-retailers-ordered-to-stop-selling-
adulterated-and-mislabeled-supplements/#.VNOYZy50bcs

http://www.consumerlab.com/news/Top-rated0Vitamin0Brands0and0Merchants0on0Satisfaction/2_1_2013/

https://www.consumerlab.com/recalls.asp

http://www.answers.com/Q/Where_are_spring_valley_nutritional_products_
manufactured_that_are_sold_at_Wal-Mart

http://www.ask.com/health/spring-valley-vitamins-ac3cc8863996ef1d

 

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

1/29/15 If you missed- Miranda Esmonde-White creator of Classical Stretch - Aging in Reverse please see the archives on www.thepowerherbs.com

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 April 2015.

 

HMO1 Save $10 off with orders of $75 to $125

 

HMO2  10% off orders of $100 to $250

 
HMO3  15% off orders of $250 to %500

 

"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, and 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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