Archive for the ‘Biblical Economics & Money’ Category

Final Phase of the Dollar Supremacy?

Friday, July 25th, 2014

My premise in observing world events is based on “the love of money is the root of all evil”.  Thus anytime a global-based event occurs, we must consider who has the most to gain from the event.  Yes, there are real accidents that do occur.  However, with as many failsafe mechanisms in place these days, you must consider possible intent behind events.  There are many coincidences occurring which surround the departure from the dollar as being the world’s reserve currency.

Each country attempting to settle payments with something other than the dollar tends to get overthrown.  This was true in Iraq, Libya, and other countries.  Russia and China are moving forward with alternative settlement mechanisms.  Russia is now being vilified for the downing of the Malaysian Flight 370.  Israeli attacks on Gaza has killed more civilians (800 total killed in Gaza, mostly civilians) than the downed airliner.

18.2 million gallons of Agent Orange (Dioxin) was sprayed by the U.S. military over more than 10% of Southern Vietnam, as part of the U.S. herbicidal warfare program, Operation Ranch Hand, during the Vietnam War from 1961 to 1971. Vietnam’s government claimed that 400,000 people were killed or maimed as a result of after effects, and that 500,000 children were born with birth defects.  My brother-in-law as well as many other veterans of this war died because of their exposure to Agent Orange.  I point these statistics out to present a relative comparison of media attention to sway public opinion.  Will we ever know that facts?  Only Our Heavenly Father could wade through all of the disinformation being spread by all.

Saudi Arabia is the latest country taking independent steps to move away from the dollar’s dominance.  Currently, the country’s central bank, the Saudi Arabian Monetary Agency, has long managed the country’s investment of oil surpluses abroad, focusing on low-risk assets; it is believed to have placed over half of its foreign reserves, now equivalent to about $730 billion, in conservative U.S. dollar assets such as U.S. Treasury bonds and bank accounts.  Saudi Arabia’s Shura Council, an influential advisory body to the government, will discuss a proposal for the country to establish a sovereign wealth fund that would invest some of its vast oil earnings, local media reported.  See: http://uk.reuters.com/article/2014/06/08/saudi-sovereign-funds-idUKL5N0OP09020140608

Why does Saudi Arabia suddenly need a sovereign wealth fund?  Could they be intending to dump their U.S. based assets?   What unexpected tragedy will happen there I wonder?

All of this emphasizes the need to place your trust in Our Heavenly Father, not man.

Ugly Numbers coming

Thursday, July 24th, 2014

From John Williams’ www.Shadowstats.com :

- Unhappy Surprises in Pending GDP Numbers
- Look for Downside Revisions to GDP Growth of Recent Years, Including First-Quarter 2014
- Initial Estimate of Second-Quarter GDP Growth Should Surprise Market Expectations Sharply on the Downside

- Quarterly Consumer Inflation of 3.0% at Three-Year High
- Inflation Wiped Out Headline Gain in June Retail Sales
- Real Earnings Fell for Third Straight Month
- June Annual Inflation: 2.1% (CPI-U), 2.0% (CPI-W), 9.8% (ShadowStats)
- Existing-Home Sales Fell Year-to-Year for 8th Straight Month
- Negative Surprises Likely in Next Week’s GDP Reporting and Revisions

Go to the grocery store, the gas station, the local restaurants, etc. and you will agree with John’s 9.8% inflation number.  The governments numbers are pipedreams.  Inflation at 9.8% and the savings rate at .3%.  Your savings is shrinking at a rate of 9.5% per year.  They are trying to get you to prop up the stock market by moving savings to this market of inherent greater risk.  Who really cares about your safety and future?  What they are prodding you to do with the low savings rate:  “Just cross your fingers roll the dice!”  What a travesty to those who spent their lives doing the right thing.

To subscribe to his service:  http://www.shadowstats.com/subscriptions

The U.S. Dollar continues losing ground

Thursday, July 24th, 2014

On July 21, Turkish Prime Minister Tayyip Erdogan spoke in an interview with Turkey’s ATV television, and confirmed that his office had cut off direct communications with President Obama, and in fact, were no longer even answering calls received from the White House.  See:  http://www.examiner.com/article/u-s-ally-cuts-off-communications-with-obama-and-seeks-new-trade-outside-dollar

It would appear the BRICS countries are gaining in their quest to move past the dollar-based global trade environment.  This will not bode well for those who are holding dollar-denominated assets.  If you have not moved toward a wealth preservation orientation, you might want to consider it.  If you are highly leveraged with much debt, you might want to move toward a “no debt” life.  How many more countries will join them?  Before long we will call them BRICSTGFBSPGA…

In the 1980’s, the Southwest U.S. suffered a deflationary recession due to the oil bust.  Texas, Oklahoma, and other surrounding states saw real estate prices drop up to 50%.  I can recall looking at houses and being concerned that if we bought a house, the value could drop further and we would be “upside down” on the loan by tens of thousand of dollars.  That is the negative side of leverage.  Auto buyers know all too well how that can happen.

Stronger sanctions against Russia will further alienate Germany.  The German economy has many economic ties to Russia and Germany has the greatest influence in the European Union.  The U.S. is pushing Germany to participate in stronger sanctions.  This may backfire.

If you try to control everyone and everything, you end up controlling nothing.  The U.S. may have the strongest military but it doesn’t have unlimited resources.  Throughout history, this path has always ended up in failure.  Overextension of reach only serves to shorten the duration of control.

As I continually write, the solution to today’s complex economic problems can only be solved by Our Heavenly Father.  Mankind has painted itself into a box.  Structure has brought us to servitude.  Only Our Heavenly Father can set us free.  Think about it.

The State of the Current System

Wednesday, July 23rd, 2014

Richard Russell, a veteran investment newsletter writer, was recently quoted:

“During World War II, 60 million soldiers and civilians died. Those of us who survived detest war and all those who thrust innocent people into combat against their fellow man. Are we former savages waking up and following the spiritual path to love? Is it too much to hope for? I keep writing and hoping.

Now I want to bring that thesis into the present. I hear daily about the horrendous circumstances that the US faces — rising interest rates, hyperinflation, debt disaster, deflation, war in the Ukraine, war is Gaza, fading GDP, unemployment, Millennials moving back with their parents. And this is only a partial listing of potential troubles.

… Currently, I’m more interested in capital preservation than capital appreciation.

To do that I’ve positioned myself with silver and gold. I believe gold is currently locked in a trading range of 1200 to 1400. If gold breaks out above 1400, that’s fine with me, but I won’t be selling my gold. Sell it for what? Sell it for the paper that I originally swapped for my gold because I didn’t trust the paper (Federal Reserve notes)? I’m aware of history. History tells me that all fiat money ends worthless.”

Each and every day we are being given more confirmations of Richard’s statements and conclusions.  It appears that those in power are posturing the masses for another war.  War only promotes the agenda of those controlling the purse strings by manipulating the masses with fear and self-interest.  When a crisis occurs, those in power pursue greater control by removing liberties of the masses.  The embedded fear in the masses  causes them to accept the change without a challenge.  History reconfirms the ultimate result of this path: death and destruction.  Love is the only answer.  Why focus your time and resources on anything else of less importance?

The EBT Card

Tuesday, July 15th, 2014

EBT means “Electronic Benefits Transfer”.  This card has replaced “food stamps”.  The following quotes tell the story:

“And so we’re still seeing that midnight shopping in our stores when that EBT card, it’s like a debit card, when it is ready and it is funded, there are people who are in the store at midnight because they know it turns on. And they have shopped from like 10:45 to midnight and they’re waiting for that card and then our lines open up. And we’ve had some of our busiest hours at midnight.” — Rosalind Brewer, Executive Vice-President, Wal-Mart

“I think the most telling indicator for us that economic weakness and employment is the key issue driving soft volumes, is the fact that we continue to see, as – in contrast to the historical norms, we continue to see volume pick up heavily at the beginning of each month, and then steadily erode through the month, being particularly soft in the last week to 10 days of the month. That just tells us that people are running out of money.” — Gregg Engles, CEO, Dean Foods

Last week, I went into Sam’s Club to pick up a few items.  I was amazed that in the middle of the week and around lunch time, the place was packed.  Lines were long and carts were full.  A lady with her adult son and granddaughter were ahead of me.  You could not get one more grocery item in her cart, it was stacked high.  When she paid, I found out why… the EBT cards.  Yes, the adult son paid for part of the items with his card, she paid for the rest with hers.  There was a small amount due, probably items that did not meet the EBT criteria.  She pulled out cash to pay the difference.

Yesterday, I saw a couple at the local Homeland store using their EBT card and try to “double dip” with coupons.  The cashier explained the policy to them against using more than one coupon per household for a particular item.  This man did not appear to need an EBT card, neither did his wife.

Transfer payments have passed the 51% relationship versus the American working force.  We now have more people receiving government assistance than we have workers.

Shadowstats.com’s John Williams states:

“Now into the second-half of 2014, the broad outlook for a hyperinflationary great depression—beginning this year—has not changed, but it has evolved, with various details continuing to fall into place, such as the renewed downturn in domestic economic activity.”

Here is how the American Entitlement Bubble is currently staying afloat:

1. U.S. Treasury issues new debt

2. Federal Reserve creates money out of thin air and buys a net 88% of the new debt.

3. EBT Cards are loaded each month with borrowed money from #1.

4. People go to Walmart and other stores to buy food and pharmaceuticals.

5. Those large corporations report positive earnings and their stock prices stay up.

6.  Workers’ income tax receipts pay on the outstanding debt and other government services.

7.  Financial news media report stable earnings by those large corporations in #5.

8.  The Dow Jones Averages hit new highs thus creating a “Wealth Effect” for those with stocks in their portfolios… “All is okay”.

9.  The CEO’s receive bonuses for doing so well as their company’s stock values stay up.

10. The CEO’s fund reelection of those politicians who support #1,2, and 3.

11. The Federal Reserve keeps rates low enough for the public corporations to buy back stock and pay less dividends out.  They also receive a tax break.

12. The middle class receives less interest on their life savings due to #11.

13. The middle class starts using up savings to live on.

14. At some point, the middle class family applies for their EBT card so they can eat.

15. More EBT cards means that the U.S. Treasury needs to fund the outflow with more debt.  Go to Step #1

The 64 Trillion Dollar question is: “How long will investors tolerate the creation of money by the Federal Reserve thus depreciating their current investment valuation?”

When one major player heads to the exit, there will be a stampede.  Only Our Heavenly Father knows the day and the hour.

The Head Of ‘The Central Bank Of The World’ Warns That Another Great Financial Crisis May Be Coming

Monday, July 14th, 2014

When the head guy issues a warning, you might want to consider that it could occur sooner rather than later.  This is a classic “CYA” move.  He mentions what I have been warning about:

- The global financial system is currently “more fragile” in many ways than it was just prior to 2008.

- Debt ratios are now far higher.

 

See: http://etfdailynews.com/2014/07/13/the-head-of-the-central-bank-of-the-world-warns-that-another-great-financial-crisis-may-be-coming/

Numerology Speech

Tuesday, July 8th, 2014

 

 

The most interesting number to me is “16”, the number of Love.  Love will ultimately have its way:

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Focus on Love and everything else will play out accordingly.  A global currency reset is “small potatoes” in the biggest of pictures.

The Money Bubble growing

Tuesday, July 8th, 2014

Debt is soaring around the world.  The stock market is soaring and things are getting crazy.  Six years of zero percent interest rates are devastating the middle class.  48,000,000 people are on food stamps in the U.S. 11,000,000 people are on disability.  The jobs report looked good until you look at the numbers behind the numbers.  All of the growth was in “part-time” jobs (800,000).  Full-time jobs are declining (500,000).  The net effect was an increase of 300,000.  Put some more lipstick on that pig please.

In Iraq it continues to get ugly.  Syria is concerned.  Saudi Arabia is too.  The turmoil could affect the price of oil and push it up dramatically.  The goal of the printing press is to make everyone feel good and overlook all of these problems.  The U.S. armed the Syrian rebels and they became ISIS.  We are now fighting them.  The geopolitical arena is so fragile, there are many black swans that could burst the money bubble.

As the debt increases, men do insane and desperate things.  China borrowed 15 Trillion Dollars to build infrastructure that may never become economical.  Ghost cities will degrade over time.  The risks are high everywhere.

When will the bubble burst?  Nobody knows.  When the bubble pops, governments will go bankrupt.  How will it go down?  Nobody knows.  Some believe that hyperinflation will kick in.  Others believe that a deflationary collapse will occur.  The average guy will be the one who will suffer the most pain.

We have been convinced by the car dealers to take out 96 month car loans since everybody needs a luxury SUV.  Hardly anybody can afford 36 month loans anymore.  Students are borrowing huge amounts to get a degree that may never support a payback plan.  The population has deferred the economic pain of compression.  Will we have a Great Depression II or a Weimar Republic hyperinflation?  Maybe both, one after the other.

The Ponzi scheme continues because the money printing press has deferred the ultimate reset.  The longer it takes to reconcile the “books”, the more severe the overall pain.

Social unrest will come.  High density population areas will be susceptible to the greatest social unrest.

Move toward self-sufficiency.  Lower personal expenses/cost of living.  Become indispensible at your job (if you have one).  As I continue to preach:  Simplify.

Man’s ego will be “popped” once again.  Everyone will ask “How did this happen?”  The ego “caused the mouth to write checks the body could not cash”.  I know I sound like a broken record but this is no different than the years before the tech bubble popped.  It is no different than when the real estate bubble popped.  We are now in the “mother” of bubbles.  It will get ugly for those who have their trust in the ways of the world.  There is a vast majority in that boat and it will eventually sink.  The solutions to all of the coming challenges will be found only from Above.  The revelation of Love will be the key to opening your understanding.  I am convinced of this Truth.

Silver Chart

Monday, July 7th, 2014

Technically, silver’s future could look like this:

 

As a disclosure, I invest in silver and related stocks.

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Chatter about July 20th

Monday, July 7th, 2014

There has been some focus placed on July 20th as a possible economic/monetary event that might affect us all.  These days, anything could happen.  The complexities that have been created by man have increased to the point where any aspect of the current system could fail, or caused to fail by some nefarious plan implemented in order to bring us into further subjection.  It is my hope that this chatter is simply another mind-generated suspicion without any substance.  However, I would rather be prepared for such an event than be a day late with regret.

The American economy continues to weaken.  Our latest trek to the Alabama coast confirms that belief.  We have been going down South for the past 38 years and have a good feel for the economy based on the crowds or lack thereof.  Restaurants are no longer packed, traffic was not as heavy, and the beach was not overcrowded except for July 3rd and 4th.  People are cutting back in all areas.  Food prices are going through the roof and gasoline prices were in the mid to high $3 range.  We’re growing accustomed to the new price levels.

In the past, the solution to America’s economic woes focused on war.  People are weary about another war at this time.  A false flag event could take place in order to sway the population into yet another major conflict.

Since the 2008 meltdown, the banking system has not improved at all.  On the contrary, it is more fragile today than ever and the big banks have increased in size and concentration.  Their political funding has once again paid off in spades.  At the same time, the middle class is shrinking.  This group was the economic engine to keep the economy growing.  Consumption continues to decline and the true statistics reveal this reality.  This is why one must be aware of the possibility of an act of desperation by those in control.

In such a complex world, what can you and I do?  My long-term solution comes from Above, not here at the worldly level.  In Scripture there were 13 recorded famines.  Mankind brought on these famines.  Our Heavenly Father had the solutions to the famines then as HE does now.  HE knows that a Remnant will intercede for mankind and HE will sustain that Remnant while the rest of the world goes through whatever judgment necessary to once again balance the scales.  Jesus’ ministry occurred during the occupation by Rome yet He had no problem in rallying resources as needed to minister to the hungry.  Should we expect anything less now?

The noise of the current system can be deafening if you let it.  Each of us should enter into our “closet” and focus on hearing Our Father’s Voice.  HE will guide us through whatever lies ahead.  If something major does happen on the 20th, those who rely on Our Father will be the examples for others to see and emulate.  We will be the calm ones in the midst of the storm.