Archive for December, 2008

Thank You for Your 2008 Support

Wednesday, December 31st, 2008

We thank everyone who supported Servias Ministries this year.  The ministry continues to grow and our readership has expanded to Europe and Canada.  We appreciate reader comments and will continue to provide relevant economic and health oriented writings.

 

 

 

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Memory Loss

Tuesday, December 30th, 2008

Some say "Experience is the best teacher" but I believe "Experience of someone else fully revealed to me is the best teacher".  The Holy Scripture provides us an excellent economic guide to live by.  Those that study history see that society continues to make the same mistakes over and over again.  As it has been said, "History may not repeat itself, but it runs parallel".  The current financial crisis is a case in point.  Once that most of the Great Depression Era men and women died off, their wisdom and understanding died with them.  They were in essence the watchmen on the wall.  They would remind us of the mistakes made which caused the Great Depression.  Once their call for sanity disappeared, the current leadership (and their egos) decided they could defy economic gravity.

Our ego has overpowered our memory.  Our ego wants to overpower our ability to hear GOD.  America has become the poster child for the epitome of economic consumption.  Do you remember when the President told us to "go out and spend" to help the economy?  The last two Fed Chairmen claimed ignorance of the financial bubbles prior to their bursting. C’mon!

Our long-term memories tend to erase themselves thus adversely affecting our judgment.  Our actions are based upon motivating factors such as greed, fear, judgment, or revelation.  Those of us who have knowingly acted on revelation thirst for more!  Revelation from Our Heavenly Father is superior to any set of facts that could be presented.  Why?  Our Heavenly Father is not restricted to this time continuum that we are operating in. HE knows the beginning from end.

The Great Depression was the result of the Roaring 20′s.  The 1920′s was noted for the loose credit granted to borrowers who then "played" the stock market.  Sound familiar?  The current policy makers are already making the same mistakes made back then.  This is not a repeat of the 1930′s because the U.S. was a creditor nation with a strong manufacturing base and an exporter of oil.  Now the U.S. is the largest debtor nation in history, an importer of oil, and a much smaller manufacturing base replaced by a "services based" economy.  The consequences may be more dramatic this time.

Frankly, I’m getting tired of the rhetoric, everybody’s got an opinion of the solution to this global problem.  Everyone has memory loss!  Leaders are determined to make the same mistakes of seventy years ago.  Is it a massive conspiracy by the elitists?  Is it a hidden agenda being carried out over multiple decades and multiple descendents of the ultra wealthy?  Fear mongering is not the solution to sway public opinion to the right economic direction.  A "black swan" event is not prepared for in any of the mental disciplines.  Mathematical probabilities exclude a financial tsunami event in the investment calculations.  How do we prepare for those society changing events?  What can we do to respond to those gut wrenching challenges that seem to appear out of nowhere?

First of all, study to show thyself approved:

2Ti 2:15-16

Be diligent to present yourself approved to God, a worker who does not need to be ashamed, rightly dividing the word of truth.

But shun profane and idle babblings, for they will increase to more ungodliness.

Secondly, pray in your closet:

Mat 6:6-7
But thou, when thou prayest, enter into thy closet, and when thou hast shut thy door, pray to thy Father which is in secret; and thy Father which seeth in secret shall reward thee openly.

But when ye pray, use not vain repetitions, as the heathen [do]: for they think that they shall be heard for their much speaking.

"Closet" is also used in the Old Testament:

Joe 2:1-19
Blow ye the trumpet in Zion, and sound an alarm in my holy mountain: let all the inhabitants of the land tremble: for the day of the LORD cometh, for [it is] nigh at hand;

A day of darkness and of gloominess, a day of clouds and of thick darkness, as the morning spread upon the mountains: a great people and a strong; there hath not been ever the like, neither shall be any more after it, [even] to the years of many generations.

A fire devoureth before them; and behind them a flame burneth: the land [is] as the garden of Eden before them, and behind them a desolate wilderness; yea, and nothing shall escape them.

The appearance of them [is] as the appearance of horses; and as horsemen, so shall they run.

Like the noise of chariots on the tops of mountains shall they leap, like the noise of a flame of fire that devoureth the stubble, as a strong people set in battle array.

Before their face the people shall be much pained: all faces shall gather blackness.

They shall run like mighty men; they shall climb the wall like men of war; and they shall march every one on his ways, and they shall not break their ranks:

Neither shall one thrust another; they shall walk every one in his path: and [when] they fall upon the sword, they shall not be wounded.

They shall run to and fro in the city; they shall run upon the wall, they shall climb up upon the houses; they shall enter in at the windows like a thief.

The earth shall quake before them; the heavens shall tremble: the sun and the moon shall be dark, and the stars shall withdraw their shining:

And the LORD shall utter his voice before his army: for his camp [is] very great: for [he is] strong that executeth his word: for the day of the LORD [is] great and very terrible; and who can abide it?

Therefore also now, saith the LORD, turn ye [even] to me with all your heart, and with fasting, and with weeping, and with mourning:

And rend your heart, and not your garments, and turn unto the LORD your God: for he [is] gracious and merciful, slow to anger, and of great kindness, and repenteth him of the evil.

Who knoweth [if] he will return and repent, and leave a blessing behind him; [even] a meat offering and a drink offering unto the LORD your God?

Blow the trumpet in Zion, sanctify a fast, call a solemn assembly:

Gather the people, sanctify the congregation, assemble the elders, gather the children, and those that suck the breasts: let the bridegroom go forth of his chamber, and the bride out of her closet.

Let the priests, the ministers of the LORD, weep between the porch and the altar, and let them say, Spare thy people, O LORD, and give not thine heritage to reproach, that the heathen should rule over them: wherefore should they say among the people, Where [is] their God?

Then will the LORD be jealous for his land, and pity his people.

Yea, the LORD will answer and say unto his people, Behold, I will send you corn, and wine, and oil, and ye shall be satisfied therewith: and I will no more make you a reproach among the heathen:

The Bride of Christ, the overcomers, will be found in their closets receiving revelation from THE GOD OF HEAVEN AND EARTH.

The answer to the global financial crisis is found in this passage from the Book of Joel: Repent (turn to ME), fast (subdue the ego), weep and with mourning (confess our sins and release them), rend our hearts (so they become pure).  When this occurs, revelation will replace man’s wisdom, judgment, and fear.  Only then will the crisis be over.

"Fear not"

Sunday, December 28th, 2008

2009 may be the year where the markets are more volatile than any other time in history.  With the dramatic increase in information and opinion exposure from the hundreds of channels on television as well as the Internet, men and women will be exposed to many potentially fearful events.  Radio talk shows thrive on confrontation, dissension, conspiracy, etc.  Public opinion is swayed by network news reporting of events deemed by the producers to be the "news of the hour".  Reporting of politicians’ indiscretions can end their lives in public office.  Good news just doesn’t sell like bad news.  Bad news ultimately generates more income.  People have come to thrive on fear as long as it doesn’t hit to close to home.  As they say, "it’s a recession if your neighbor lost his job, it’s a depression if you lost your job".

The first mention of fear in the Scripture is:

Gen 3:10 And he (Adam) said, I heard thy voice in the garden, and I was afraid, because I [was] naked; and I hid myself.

A judgment is a balanced weighing up of evidence preparatory to making a decision.  Both Adam and Eve made a judgment based on evidence they had.  However, they did NOT make the judgment on ALL evidence or facts.  Our Heavenly Father had all of the facts that were needed to make an accurate judgment.  HE warned Adam about the fruit and told him what the result would be if he ate the fruit.  Adam did not fully trust The LORD but trusted his own judgment instead.  Both Adam and Eve disregarded Our Heavenly Father’s knowledge of the facts in making their decision thus they exalted themselves above THE LORD.  This act of judging started a process that has continued to this day.

We judge people and things daily based on an incomplete set of facts.  Who has the complete set of facts?  Our Heavenly Father!  Our constant judging of others has kept us from a more intimate relationship with Our Heavenly Father.  In the following passage, Jesus warns us of judging:

Mat 7:1-5
1 Judge not, that ye be not judged.

2 For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again.

3 And why beholdest thou the mote that is in thy brother’s eye, but considerest not the beam that is in thine own eye?

4 Or how wilt thou say to thy brother, Let me pull out the mote out of thine eye; and, behold, a beam [is] in thine own eye?

5 Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eye.

Notice that He used the term "brother".  People have a tendency to judge everyone, including those closest to them.

 

"Fear not" was first used by Our Heavenly Father when speaking to Abram.  Abram had just defeated Chedorlaomer and the kings who were with him in a battle.  Then Melchizedek king of Salem brought out bread and wine; he was the priest of God Most High and proclaimed the following:

 

Gen 14:19-20

19 And he blessed him and said: "Blessed be Abram of God Most High, Possessor of heaven and earth;

20 And blessed be God Most High, Who has delivered your enemies into your hand." And he gave him a tithe of all.

 

Abram gave tithe of all which tells us he understood the "law of the tithe" prior to the writing of the Law by Moses.  Melchizedek proclaimed that GOD MOST HIGH was the possessor of heaven and earth which is the precondition of a tithe being given.  Fear is the primary motivator for the withholding of the tithe.  By giving the tithe, Abram acknowledged the MOST HIGH GOD, Our Heavenly Father.

The King of Sodom briefly entered the picture and tried to make a deal with Abram but was unable to negotiate with Abram.  Then THE LORD spoke to Abram:

 

Gen 15:1  After these things the word of the LORD came unto Abram in a vision, saying, Fear not, Abram: I [am] thy shield, [and] thy exceeding great reward.

 

"Shield" means defense, defender, or protector.  "Exceeding great reward" denotes a fullness of blessing and compensation as in wages.  People tend to interpret Scriptures like this to mean they will become rich and no longer have any responsibility and obligation to anyone.  Abraham’s wealth was consistent with his calling.  Each of us will receive the necessary means to fulfill our calling.  However, in order to fulfill our calling we must not judge people thus causing a blockage in our ability to hear THE FATHER.  Also we must rest in our relationship with Our Heavenly Father and "fear not", HE has all of the facts!

The Letter vs. The Intent

Friday, December 26th, 2008

The United States as well as individual states have thousands and thousands of laws on the books.  In Oklahoma, it is against the law to spit on the sidewalk as well as curse in public.  Those laws are still on the books but not enforced.  Political leaders find it expedient to have laws passed with many loopholes to allow virtually any action to be "lawful" by the government.  We spoke recently about the laws passed to fund the financial bailouts.  In a recent speech I heard by Newt Gingrich, former speaker of the House, he stated the following:

(Quote) "I think there are going to be two scandals coming out of this process when we get around to all the historians and reporters and people who pay attention because this is now a big enough scandal.  You might even get a book by Bob Woodward about this by the time it’s over.  It’s reached a stage where you might actually have political reporters try and understand financial things.  One of the scandals will be the entire process of political donations and power on Capitol Hill and the degree to which people like Senator Chris Dodd, who was the largest recipient of Fannie Mae and Freddie Mac is also in charge of the committee overseeing them.  And I suspect you may see a serious proposal to adopt a rule that no one who’s a member of a committee can take money from any political action committee or anyone involved in the industries they oversee.  We’re clearly going to have to look deeply because there is something fundamentally sick about watching the way in which the Congress has dealt with this.

The second, though, is Secretary Paulson.  I think it is profoundly troubling that the chief of staff to the president worked for Goldman Sachs, the Secretary of the Treasury worked for Goldman Sachs.  I’m told the person brought in to oversee Fannie Mae and Freddie Mac was a past chairman of Goldman Sachs.  We learned in the New York Times on Sunday that the only private sector institution that was in the meeting at the New York Federal Reserve to discuss the future of AIG was the chairman of Goldman Sachs, and that Goldman Sachs had a 20 billion dollar interest in AIG and two weeks later the Federal government found 85 billion dollars to bail out AIG.

I received an email this morning from a very, very successful businessman who literally is worth hundreds of million of dollars and is very shrewd, who said, and I can’t prove this yet but we’ll be working on it all day today, if you look at the collapse of Bear Stearns, that it was his understanding that Goldman Sachs had been shorting Bear Stearns and that the head of Morgan said he would have paid more for Bear Stearns and was told by Paulson that he could only pay $2 a share.

Now, no one has slowed down – and here’s what’s happened.  Liberal Democrats have no particular interest in learning any of this because they like bigger government, they want more power in Washington, they believe in bigger spending, so they’re happy.  I mean this administration has given them a greater chance to move towards a socialist America than anything in modern times.  They can’t imagine how good George W. Bush has been for them being able to centralize power in Washington and spend your money.  They got 152 billion dollars in a stimulus package in the spring that didn’t work and would have been far better off being spent on investments to create jobs.  They got 300 billion dollars this summer for a housing bailout that didn’t work.  So they’re already up 450 billion dollars.  If you’re a liberal Democrat, it doesn’t get much better than this.  It’s very hard to imagine that if Obama gets elected how he’ll ever match the Bush administration in increasing federal spending.  And now they have a chance to have 700 billion dollars at the Treasury that they get to spend because they expect to replace President Bush with a Democrat.  They’re thrilled.  Why would they raise any questions?

On the other hand, Republicans are so embarrassed that this is a Republican administration that they have felt timid about telling the truth and raising questions.

But here are things that need to be looked at. Was Goldman Sachs shorting Bear Stearns?  Did Secretary Paulson insist on the lowest possible price deliberately, and if so, why?

Why did he punish those particular shareholders, or was he in fact indirectly rewarding Goldman Sachs?  Was Goldman Sachs, as the New York Times alleges, the only company in the room at the New York Federal Reserve in deciding the fate of AIG?  And by what standard, by what right?

I think this is frankly a level of such appearance of corruption, and I think that Secretary Paulson has shown in every way his complete misunderstanding of the job of Secretary of the Treasury (and I just cite – go back and look at his original proposal to give him personally 700 billion dollars with no accountability, no legislative oversight and no judicial review) that I really think the president would be vastly better off to accept his resignation and allow Bob Kimmitt to be the acting Secretary of the Treasury from now to the end of the administration. " (End quote)

This excerpt exposes some symptoms of the problems associated with the current system.  I submit this not a political issue but a heart issue.  Until the intent of the Law is followed, the letter of the Law will be abused and misused to accommodate the plans of the unrighteous.  "Love thy neighbor" also means to do the right thing and submit to the intent rather than just the "letter".

Merry Christmas!

Wednesday, December 24th, 2008

We want to thank the readers and contributors to Servias Ministries for a blessed year!  People around the world celebrate the birth of Our Lord and Savior Jesus Christ throughout the month of December.  We are truly thankful for the Love of Our Heavenly Father for sending His Son for our redemption.

Contango vs. Backwardation

Saturday, December 20th, 2008

Contango is a term used in the futures market to describe an upward sloping forward price curve (as in the normal yield curve). Such a forward curve is said to be "in contango" (or sometimes "contangoed").  Futures contracts have specific maturity dates for delivery such as March ’09, June ’09, etc.  If you are buying wheat for delivery in June of 2009, you may pay 50 cents additional over the current price (spot price).  This is the contango scenario.

Formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.

The opposite market condition to contango is known as backwardation.

Backwardation occurs in seasonal commodities such as natural gas where in the winter shortages may occur and force the short term price up whereas prices in the future assume no shortage.  Dramatic immediate demand causes backwardation.

As of 12/19/08, The spot price for natural gas was higher than the futures price:

NATURAL GAS ($/MMBtu)

                                                       PRICE*   CHANGE     % CHANGE        TIME

Nymex Henry Hub Future       5.33         -.21           -3.86            12/19

Henry Hub Spot                     5.68          .04               .71            12/19

 

Anticipated increased demand in the future causes future prices to rise relative to immediate price transactions.  Expected reductions in demand cause prices to decline… in normal circumstances in the current system.

When a financial tsunami hits, futures markets react differently and cause investors to move away from greed and respond with fear.  Investors begin to liquidate positions due to the unknown.  Technical models no longer work and fundamental investing is put on hold.  Price volatility sends amateur investors heading for the doors.

When an abnormal contango occurs, suppliers respond by buying near term contracts and sell longer term contracts.  Currently, large oil companies with plenty of cash are buying oil (rather than producing it) at $34 and immediately selling it on a futures contract for $43.  They have leased tankers to sit in the harbor and store this oil until the delivery date (within30-60 days) and pocket a $9 profit per barrel less cost of storage.  See: http://uk.reuters.com/article/allBreakingNews/idUKL365240820081203?rpc=401&

If you have $90 Million handy, you can do the same.

The Kingdom of God does not operate on speculation (contango & backwardation) but on wisdom, understanding, knowledge, and skill from above.  Joseph was given instruction from Our Heavenly Father in dealing with a Great Depression/famine in the times of Pharaoh.  When David was king, the country entered into a famine.  He inquired of The Lord and found out what to do in order to end the famine.  Wisdom from above is required to get us through these times of great perplexity.  Elijah prayed earnestly to end the drought on the land.  Supernatural intervention is the key to solving the world’s crisis.  It appears that man has now reached his "level of incompetence" in dealing with this more complex world.  Leaders are groping around for solutions to the myriad of problems confronting the nations.  Iceland is bankrupt, Ecuador is in sad shape, and Greek protestors are frustrated with government’s ineffective handling of the economy.

Events are occurring in an accelerated fashion.  This acceleration defies man’s understanding and is causing many to question the future of their nation as well as the global economy.  It would appear that we are at an end of an age where complexity ultimately crumbles under its own weight.

What should the individual do?  We should each seek The Father’s Face.  We should enter into our closet, be still, and wait on The Lord.  Jesus didn’t say "if you pray", He said "when you pray".

Mat 6:5-13

"And when you pray, you shall not be like the hypocrites. For they love to pray standing in the synagogues and on the corners of the streets, that they may be seen by men. Assuredly, I say to you, they have their reward.

"But you, when you pray, go into your room (closet or booth), and when you have shut your door, pray to your Father who is in the secret place; and your Father who sees in secret will reward you openly.

"And when you pray, do not use vain repetitions as the heathen do. For they think that they will be heard for their many words.

"Therefore do not be like them. For your Father knows the things you have need of before you ask Him.

"In this manner, therefore, pray:

Our Father in heaven,

Hallowed be Your name.

Your kingdom come.

Your will be done

On earth as it is in heaven.

Give us this day our daily bread.

And forgive us our debts,

As we forgive our debtors.

And do not lead us into temptation,

But deliver us from the evil one.

For Yours is the kingdom and the power and the glory forever. Amen.

Those who are motivated by Love and service to mankind will receive the wisdom, understanding, knowledge, and skill to establish HIS Kingdom on this earth.

The Great Perplexity

Wednesday, December 17th, 2008

Perplexity is "trouble or confusion resulting from complexity ".  If you have been reading this site in the past, you have been exposed to my crusade for moderation and simplicity: SIMPLIFY!  As my wife and I were inquiring of THE LORD recently, we were given the following passage spoken by Jesus:

Luke 21:21-26

21 "Then let those who are in Judea flee to the mountains, let those who are in the midst of her depart, and let not those who are in the country enter her.

22 "For these are the days of vengeance, that all things which are written may be fulfilled.

23 "But woe to those who are pregnant and to those who are nursing babies in those days! For there will be great distress in the land and wrath upon this people.

24 "And they will fall by the edge of the sword, and be led away captive into all nations. And Jerusalem will be trampled by Gentiles until the times of the Gentiles are fulfilled.

25 "And there will be signs in the sun, in the moon, and in the stars; and on the earth distress of nations, with perplexity, the sea and the waves roaring;

26 "men’s hearts failing them from fear and the expectation of those things which are coming on the earth, for the powers of the heavens will be shaken.

This passage focuses on the pre-conditions to the arrival of "THE SON OF MAN", CHRIST found in the next verses:

 

27 "Then they will see the Son of Man coming in a cloud with power and great glory.

28 "Now when these things begin to happen, look up and lift up your heads, because your redemption draws near."

 

Our Heavenly Father had us focus on verse 25, specifically the word "perplexity".  The "confusion resulting from complexity" clearly describes the state of the global economy today.  We are in the midst of a great perplexity.  World leaders are attempting to sort out this global mess of financial instruments of mass destruction.  The greed inherent in the system over the last 3 decades has created a bubble of epic proportions.  Our Heavenly Father issued this passage as a warning of the times.

In the Stock Market Crash of the 1930′s, men jumped out of windows to their death.  Now as men see their entire life savings evaporate in the stock market and hedge funds, we can expect to see failing hearts from fear and from the expectation of things to come.  We are told these things so that we can prepare.  How can we tap into the wisdom from above?  By following His instructions.

We were then told to proceed to the book of Titus, specifically the following passage:

Titus 2:10-3:3

10 not pilfering, but showing all good fidelity, that they may adorn the doctrine of God our Savior in all things.

11 For the grace of God that brings salvation has appeared to all men,

12 teaching us that, denying ungodliness and worldly lusts, we should live soberly, righteously, and godly in the present age,

13 looking for the blessed hope and glorious appearing of our great God and Savior Jesus Christ,

14 who gave Himself for us, that He might redeem us from every lawless deed and purify for Himself His own special people, zealous for good works.

15 Speak these things, exhort, and rebuke with all authority. Let no one despise you.

3:1 REMIND them to be subject to rulers and authorities, to obey, to be ready for every good work,

2 to speak evil of no one, to be peaceable, gentle, showing all humility to all men.

3 For we ourselves were also once foolish, disobedient, deceived, serving various lusts and pleasures, living in malice and envy, hateful and hating one another.

 

Verse 13 ties us back to Luke 21.  We are warned to deny ungodliness and worldly lusts. Instead, we should live soberly (in moderation), righteously, and godly that He might redeem us for "His own special people".

Cheap Oil (and gasoline) temporary

Saturday, December 13th, 2008

Everyone is enjoying the breather in high gasoline prices.  Do not be lulled to sleep, these prices will rise again with a vengeance.  The de-leveraging phenomenon hit all commodities with a sudden wave of sellers who were required to raise cash.  The fundamentals of peak oil have not changed in the last 36 months.

Who is at the center of this oil de-leveraging? It may include Glencore International AG, a privately held company owned by its management and employees. Headquartered in Baar, Switzerland.  The following unverified graph provides a view of the exposure of Glencore:

 

image

 

I have not fully verified this data but if it is accurate, Glencore has a serious problem.  With the unwillingness of banks to extend credit, even large companies may not survive.  Total Assets were US$ 60.0 billion and Total Glencore Shareholders’ Funds were US$ 15.7 billion at 31 December 2007.  It will be interesting to see Glencore’s 2008 numbers.  According to an Australian Public Radio report, "Glencore’s history reads like a spy novel". The company was founded as Marc Rich & Co. AG in 1974 by billionaire commodity trader Marc Rich, who was charged with tax evasion and illegal business dealings with Iran in the U.S., but pardoned by President Bill Clinton in 2001. In 1993 and 1994, Rich sold all of his majority share in Marc Rich & Co. AG back to the company.  The enterprise, renamed Glencore, is now owned and run by his former associates, including former Glencore CEO Willy Strothotte and present CEO Ivan Glasenberg. In 2005, proceeds from an oil sale to Glencore were seized as fraudulent, in an investigation into corruption in the Republic of Congo. See: http://en.wikipedia.org/wiki/Glencore

From my personal experience, the Swiss tend to be hush, hush about financial issues of their own industries.  If Glencore was on the wrong side of credit default swaps, we will soon find out.

How many of us have simply parked or sold our cars and travel by foot or bicycle?  Once you have a taste of mobility, you never want to go back.  This is the reality of China and India.  Their demand continues to rise.  The following graph from the IEA depicts the demand growth of energy:

image

 

The following graph depicts the needed supply growth over the same period:

image

The IEA expects the following:

- A serious decline in currently producing fields

- A leveling off of total crude oil production (optimistic)

- A growth in natural gas liquids to take up the slack.

This will require 64 million barrels per day of gross capacity additions- 6 times the current capacity of Saudi Arabia.

$300 oil is on the horizon…

Will Our Heavenly Father release the revelation of free energy?  Only when Love prevails.  Until then, brace yourself for a wild ride.

Indigenous vs. Surrogate Power

Friday, December 12th, 2008

Throughout Economic History, there has been a battle between indigenous and surrogate power.  Each of us has indigenous power- native, innate, and before intrusion.  On the other hand, surrogate power appoints another as a replacement for one’s own power and authority.  Each of us has rights given by our Creator.  When governments (surrogate power) are formed, we assign or give up some of our rights (indigenous power).  As long as the government represents our will everything works well.  However, when the government attempts to operate as an indigenous power, society begins to suffer.  As this illusion grows, so do the problems and repercussions.  Since true indigenous power is native to each of us, it has no attached liability whereas surrogate power has a liability to those who assigned the power.

When you borrow money, you assign power to the lender.  In turn, the lender becomes a surrogate power towards you.  Proverbs 22:7 states "The rich ruleth over the poor, and the borrower [is] servant to the lender."  Money is at the center of surrogate power.  Debt promotes surrogate power and as we leverage up our balance sheet, we continue to assign power to the creditors.  When you move to debt-free living, you take back that power and you begin to operate with indigenous power again.  You are free to bless others without the surrogate powers limiting your actions.  Bondage is removed and you are set free.

U.S. Currency (or Federal Reserve Notes) is a surrogate power to gold.  Gold has no liability attached to it though the U.S. Dollar has tremendous levels of debt attached to it.  Over the last 37 years, the U.S. Dollar has enjoyed surrogate power and the power of perception.  The U.S. had productivity and growth to support the debt it issued just as we as individuals could support debt as long as we had a job to service that debt.

In 1776, the framers of the Constitution were tired of the surrogate power of England controlling their destiny.  They began a historical journey of recapturing indigenous power.  This quest would cost many lives but there was a corporate revelation that this surrogate power could no longer subvert their unalienable rights.

The children of Israel were given indigenous power by Our Heavenly Father.  He created a Theocracy and they lived by His Commandments and had no surrogate power extracting their rights and wealth from them.  But that did not last long:

1Samuel 8:7-8

7  And the LORD said to Samuel, "Heed the voice of the people in all that they say to you; for they have not rejected you, but they have rejected Me, that I should not reign over them.

8  "According to all the works which they have done since the day that I brought them up out of Egypt, even to this day–with which they have forsaken Me and served other gods–so they are doing to you also.

As the people served other gods, they rejected Our Heavenly Father and asked Samuel for a king (1 Samuel 8:6) to judge them as other nations.  They were assigning their power to a king which turned out to be King Saul, the Pentecostal King.  They wanted to sin and have a man judge them rather than GOD.  This path never turns out well.  Surrogate power ultimately puts us into bondage, extracts our resources, and exploits our gifts.  When this happens, we only have a limited ability to be a blessing to others.  We ultimately move into survival mode.

Each of us is one revelation away from a return to indigenous power.  The bondage of debt can be broken with one idea.  Sickness and disease are subject to The Creator’s power of healing.  Revelation comes from above and to tap into this power, we must repent or turn away from the earthly wisdom and pursue our relationship with the Heavenly Father.  We must spend time in our closet (or booth):

Matthew 6:6
But thou, when thou prayest, enter into thy closet, and when thou hast shut thy door, pray to thy Father which is in secret; and thy Father which seeth in secret shall reward thee openly.

Our rewards will include recapturing the power we assigned to others.

Economic Barometer Update

Thursday, December 11th, 2008

Update on Gold:

SPOT MARKET
Dec 11, 2008 17:13 NY Time

Bid/Ask
819.70 – 820.50

Low/High
804.00 – 835.90

1 year change
+8.10  +1.00% Increase

Gold is up 1% versus this day last year.

 

Update on Stock Market:

Dow Jones Industrial Average 12/11/07: 13,432.77

                                                12/11/08:  8,565.09     1 year change: -36% Decline

 

Update on U.S Government Commitment to stave off a Great Depression:

Commercial paper – the Fed has committed to 1.8 trillion dollars.  (Commercial paper are short term notes issued by companies which use the proceeds to pay their bills from payroll to inventory.)  ($271 billion exercised)

The Term Auction Facility- (Banks borrow from the Fed)  commitment $900 billion (415 billion has been issued)

Finance company debt purchases-  $600 billion (buy debt issued by government-chartered housing companies such as Fannie and Freddie)

Money market facilities- up to $540 billion.

The Citigroup bail out, $301 billion, ($291 billion issued)

Term security lending for collateral- $250 billion

Term asset-backed loan facilities on credit cards and business loans- $200 billion

Loans to AIG- $123 billion

Discount window borrowing- $92 billion

Commercial program number 2- $62 billion(lends to banks so they can buy commercial paper from mutual funds)

Discount window number 2- $50 billion

Bear Stearns bailout- $29 billion

Overnight loans- $10 billion

Secondary credit- $118 billion

FDIC commitment loan guarantees- $1.4 trillion

Guarantees on GE Capital- $139 billion

Troubled Asset Relief Program or TARP passed by Congress- $700 billion

Stimulus package earlier in the year- $168 billion

Treasury exchange stabilization fund- $50 billion

Tax breaks for banks- $29 billion

"Hope for Homeowners" (the July bill)- $300 billion

Total:  $8 ½ trillion dollars

Total does not include next year’s stimulus program, which preliminary talks mentioned in the Journal or press conferences can range anywhere from $500 billion to $2,000 billion.

Below is a stock chart of the Great Depression. The chart begins in 1920 and ends in 1939.  The Dow peaked at 381.17 in 1929 and dropped to 41.22 in 1932, an 89% decline.  It wasn’t until 1954 that the market recovered to its previous high.  This is what Washington is afraid of- a destruction of wealth and the nation.

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Hyper-inflation is on the horizon and hard assets will be the store of value.  In order to recover, the U.S. Dollar needs to decline in value.