Archive for the ‘Biblical Economics & Money’ Category

Economic Update

Wednesday, August 13th, 2014

It is well know that agents of the Federal Reserve have been using the gold paper market to manage the price of physical gold.  The current market is as managed as it can get.  Large publicly traded companies are buying up their own stock thus reducing their outstanding shares.  Why?  They can borrow and use tax benefits that take their costs lower than dividend costs.  By reducing outstanding stock, their stock price rises in response.  This makes the market look stronger and individuals focus on the “wealth effect” of their portfolios thinking that all is good.  The problem is until you sell, you have no true profit from your investment.

Employment participation in the U.S. is in depression mode.  The current environment somewhat masks this reality because of the more complex infrastructure than that of the 1930’s.  The 23% unemployment rate reported by www.shadowstats.com properly reflects the low employment participation rate.

Currently, silver is lagging behind gold in market pricing.  I expect the silver/gold ratio to move back in line to the historic 16/1 as overprinting of fiat currencies around the world escalates. 

Europe is moving toward winter and they know that Russia holds the energy card and this is why they have not rallied behind the U.S in its foreign policy against Russia concerning the Ukraine.  The U.S. has been preparing for war in response to the economic doldrums as it has in the past.  The average American is tired of war so there must be some compelling reason to return to a major conflict.  Surely another 9/11 event won’t occur causing a major shift in public sentiment.

The 2008 banking crisis of major banks in the U.S. was not resolved.  Those banks have further concentrated power and leverage since then.  One major unexpected event can take the entire system down as it nearly did in 2008.  Every bank in the U.S. is connected by the overnight investing of Fed Funds and interbank processing of commercial and consumer transactions.  No bank in the system is totally immune to a banking crisis.  If a banking crisis occurs, a bank “holiday” is as likely now as it was in 2008.  It never hurts to have a little extra cash in the cookie jar in case such an event happens.

The global economy is in uncharted waters.  China and Russia know this and that is why they continue to increase their gold holdings.  They are paying close attention to world economic history and its lessons.  Maybe you should too.

Economic Recovery?

Wednesday, August 6th, 2014

 

This is the U.S. Labor Participation Rate

Source:  http://data.bls.gov/timeseries/LNS11300000

This is another confirmation of John Williams’ statistics.

Economy Remains in Serious Trouble

Saturday, August 2nd, 2014

 

From John Williams at www.shadowstats.com :

- Minimally Weaker-Than-Consensus Labor Numbers— Unremarkable Except for the Regular, Horrendous Reporting Quality
- July Unemployment: 6.2% (U.3), 12.2% (U.6), 23.2% (ShadowStats)
- Real Construction Spending—Stagnation with a Recent Downside Bias
- Economy Remains in Serious Trouble

 

What this tells us is that the mainstream media keeps misleading the public.  Of course they are the messengers.  Those in power know that perception keeps people spending beyond their means, also known as leverage.  In an earlier post I mentioned that one of the blessings is being a lender, not a borrower.  Think about it.  Retire your current debt as quickly as possible and if and when things get dicey, you are not desperate.  Instead, you may be raised as a standard for others to be encouraged through.  This is one aspect of Loving your neighbor.  To be lawful, a borrower should satisfy his debt, not default on it.  If you lent money to someone who agreed to repay you, would you want them to keep their word?  What fruit are we sowing for inspection?

The Power to Get Wealth

Saturday, August 2nd, 2014

Deuteronomy 8:18  “And you shall remember the LORD your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers, as it is this day.  NKJV

The purpose of wealth is to establish Our Heavenly Father’s Covenant on earth.  Any other purpose is an abuse and will ultimately be tied to some form of judgment.  Men who have attained the wealth of this world often mistakenly assume that they are gifted and entitled to the wealth.  In reality, they are simply chosen vessels to “park” the wealth until Our Heavenly Father needs it for HIS purpose.  They are stewards.  When they die, they take nothing with them except whatever fruit they produced in their life.  The fruit or works will be judged.

:19  “Then it shall be, if you by any means forget the LORD your God, and follow other gods, and serve them and worship them, I testify against you this day that you shall surely perish.

If you believe your own ability resulted in the attainment of wealth, you shall surely perish.  If you Love your neighbor and your enemies, then you will want resources to help the weaker in their time of need.  Isn’t this what Jesus did when He fed the five thousand?  If you were to receive a windfall of profit from an investment, what would be your priorities?  If you already have a list then you probably need to reassess it.  Shouldn’t you wait until you receive the wealth and then seek Our Heavenly Father what HE wants done with the funds?  We should focus on the here and now rather than the future:

Matthew 6:11  Give us this day our daily bread.

Bread represents HIS Word for us for today and each day, HE gives me a Word to focus on.  I bring this Word to you as instructed.  Those with wisdom will correct their thinking as they ponder what HE is saying today.  As I mature in HIM, I view wealth differently than I did when HE first spoke to me about wealth and riches.  HE has made it quite clear that it is HE that has the power to get wealth and HE can remove it just as fast as I receive it.

Most people hoard their wealth because they don’t really trust Our Heavenly Father to provide for them in the future.  Further, they don’t believe that Our Heavenly Father will provide for their children and grandchildren.  I have seen many heirs go astray once they have received their inheritance.  You cannot mandate righteousness by inheritance restrictions.  People who can’t handle wealth today will simply consume their inheritance in the same manner.  If you aren’t a good steward over a little, you won’t be any better with a lot.

A cheerful giver will be given more to steward.  They are tapping into the Law of Abundance.  It is counterintuitive to man’s thinking.  Why?  Because he believes in the Law of Scarcity which has at its roots, fear.

Deuteronomy 28:12   “The LORD will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow.  NKJV

The above promise is given to those who focus on establishing HIS Covenant on earth.  Jesus clearly established that we should expect resources in the model prayer He gave the disciples:

Matthew 6:9

​​Our Father in heaven,

​​Hallowed be Your name.

10 ​​Your kingdom come.

​​Your will be done

​​On earth as it is in heaven.

We do not need to escape the earth by being raptured away.  We need to focus on establishing HIS Kingdom on earth as vessels of honor, as conduits of HIS resources.  We should expect wealth, strength, and courage to come our way as we truly focus on HIS plan for wealth needed  to fully establish HIS Kingdom.

Response to a Financial Question

Thursday, July 31st, 2014

I have been asked by several to provide counsel concerning the acquiring of a windfall of wealth.  In the past, I would have focused on various instruments, laws, favorable jurisdictions, etc.  Today it is different, my response to the latest well thought out request:

The fundamental issue with all assumptions of the current system is that there is absolutely no guarantee that any bank or any instrument will survive a major black swan event, no matter what their history would suggest.  The Hunt brothers got a taste of that reality when they cornered the silver market.  A law was passed to retroactively make what they had done illegal. 

All banks are connected so no bank can be deemed to be totally safe.

Physical assets such as land, gold, and silver are the best means of preserving wealth in the coming chaos.  No matter what jurisdiction you are in, even those assets can be taken away by the ones who have a badge, gun, and a prison.  Lawfulness is optional to them.

All assumptions and conclusions based on past performance no longer apply in my belief.  The U.S. wants another world war and if this comes to pass, there will be no safe jurisdiction.  So, what are we to do?

I believe that it is imperative that we get the needed revelation from Above in how to maneuver during the coming events.  Only then will we know what to do, where to go, and what means to operate from.  That is the only solution I see at this point.  Ten years ago while I was spending much time in Switzerland and other locales, I became aware of many paths as you have mentioned in your post.  I now see weaknesses in all of them.

My focus and resources are now placed in attaining to a higher level of spiritual understanding.  I believe there are mysteries to unlock that will answer all of your questions.  However, they have not yet been revealed. 

Those mysteries are part of the treasures stored in the Treasury of Heaven.  They will only be distributed to further the Kingdom at the appointed time.

Preparing for Chaos

Monday, July 28th, 2014

“Last week the Securities and Exchange Commission announced new rules for money-market funds. Funds will now be allowed to deviate from the heretofore sacrosanct $1 pricing model. The abilities to charge penalties for withdrawals as well as to delay payment were also part of the announcement. This should be considered an omen to investors when considering how much capital to maintain in these funds as well as the investment strategy of the funds in which money has been invested.”  See: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542347679#.U9Y7DvldUrU

They call these changes “reforms”.  I call them alarm bells.  In essence, these reforms have similar characteristics to restrictions preventing a bank run.  Anytime they limit withdrawal of your money, it should be called a new restriction of your money.  Penalties on your money is another name for negative interest rates.  These changes would not be made if those in power were not concerned about the financial storm ahead.

The Good Samaritan

Saturday, July 26th, 2014

Jesus was explaining the Great Commandments on Love to a lawyer.  Intertwined in the explanation was the following parable of the Good Samaritan

Luke 10:30 Then Jesus answered and said: “A certain man went down from Jerusalem to Jericho, and fell among thieves, who stripped him of his clothing, wounded him, and departed, leaving him half dead. 31 Now by chance a certain priest came down that road. And when he saw him, he passed by on the other side. 32 Likewise a Levite, when he arrived at the place, came and looked, and passed by on the other side. 33 But a certain Samaritan, as he journeyed, came where he was. And when he saw him, he had compassion. 34 So he went to him and bandaged his wounds, pouring on oil and wine; and he set him on his own animal, brought him to an inn, and took care of him. 35 On the next day, when he departed,fn he took out two denarii, gave them to the innkeeper, and said to him, ‘Take care of him; and whatever more you spend, when I come again, I will repay you.’ 36 So which of these three do you think was neighbor to him who fell among the thieves?”

37 And he said, “He who showed mercy on him.”

Then Jesus said to him, “Go and do likewise.”

If you are going to fully walk in Love, be prepared to put your money where your mouth is.  The Good Samaritan:

1. Paid for a room

2. Paid for any food and supplies to restore the victim

3. Left the tab open until he returned to make sure the innkeeper was made whole

It sounds like the Samaritan understood the Law of Abundance and operated in it.  What are you willing to do for a “neighbor”?  The stronger must minister to the weaker.

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.