Archive for December, 2011

The Current Economic Environment

Saturday, December 31st, 2011

The Currency Wars are in full swing and no country wants a strong currency.

Central Banks’ Money Printing causing deficits to grow to an unsustainable level.

Financial Repression pushes the interest rate well below the inflation rate thus extracting purchasing power away from the saver.

Market Intervention keeps the average investor from normal investing practices that would assure an adequate retirement income or wealth accumulation.

What am I to do?  It seems that the world could fall apart at any time.  The goal is to be the “last man standing”.  Moving to the essential area of the market with your money may be the safer place to be.  Gold & silver are insurance positions against catastrophic events.  Dividend paying stocks in energy, food, utilities, and other essentials with a long track record are another source of investment.  A strong track record of dividends usually indicates strength within a company.

There is no sure way to invest in a fragile global economy.  The only sure thing to do is to continue developing your relationship with Our Heavenly Father for HE knows where to focus your resources.  2012 assures us that hope, faith, and Love will be required like never before.  Man’s complex systems will ultimately collapse and your reliance on those systems will put you at risk as well.  Your trust in methodologies that worked over the last forty years will be challenged soon.  We have come to believe that technology would fix anything rather than the wisdom, understanding, knowledge, and skill from Above.  We will see that fallacy exposed soon.

Kingdoms in the Arab world  have been crumbling.  I believe they are the precursor to the fall of other kingdoms.  Our peace will come from Above as we place our focus inward rather than the outward.  Forgiveness will move us toward the fullness of Love.  Ask Our Heavenly Father to show you who you need to forgive and who you have need of forgiveness.  It is time to wipe the slate clean.  Bitterness must be removed at its root in order for you to attract the resources needed for your calling.  Your calling is necessary for the economic system that will ultimately replace the current greed-based system.  The new Love-based system will bring forth technologies that serve mankind rather than extract the life out of the population.  No longer will we settle for the exploitation through fear-based methods.  Love will prevail!

Gold & Silver in 2012

Thursday, December 29th, 2011

There is so much noise occurring in the financial markets that one must step back and look at the fundamentals.  First let’s look at the historical performance of both metals:

Gold % Gain/Loss


Silver % Gain/Loss

It is clear the silver has greater volatility attached to it, especially with an 81.9% move in 2010.  At this writing, I expect to see a drop similar to 2008.  Those that have the ability to manipulate the price will attempt to remove anyone who is “long” silver in a leveraged position.  This situation determines how strong your conviction.  This is why I have not been an advocate of leverage.  Even though I don’t own a lot of silver compared to many, none of it is leveraged thus the downward swings in price don’t phase me.  If anything, it allows me to buy a few extra coins for the future.

I expect gold to move between 1,500 and 2,100 for 2012 unless the Iran conflict heats up or the European crisis reveals worse financial losses than previously reported.  If that happens, $3,500 is in sight.  I expect the volatility of silver to continue as it always has and see 24 to 50 as the potential range.  The paper market does not reflect the physical market for there are notable delays in shipments of silver purchases.  The physical demand is not reflected in the current price, a classic sign of manipulation of the paper market.

Those with government and financial backing and are primary dealers in the gold and silver market are clearly “painting” sell signals in these markets from a technical perspective.  Traders who rely heavily on technical indicators will be removed from their long positions as their computers flash sell signals.  As usual, manipulation occurs just prior to critical review dates such as the year end.

I will continue to scrape up cash to buy silver ounces and gold & silver stocks.  I believe that this is a late Christmas present.  I will not leverage up to buy however.  I will only buy stocks with strong cash positions and substantial reserves in the ground.  I will pay close attention to those stocks paying dividends, an indicator of excess cash.

DISCLAIMER:  Visitor understands that the Websites may contain information about various types of investments, investment strategies, or investment philosophies, but that this information and Content does not constitute "advice" related to Visitor’s personal financial situation, nor does it constitute any "recommendation" on how to invest Visitor’s portfolio of assets. No investment strategy, investment philosophy, or investment discussed or presented on the Websites is "suitable" for any specific person or situation. None of the information on the Websites constitutes a solicitation to buy or sell any security or investment. Visitor understands that opinions regarding investments, investment strategies, or investment philosophies presented or discussed on the site may differ from each other or vary widely. The investments, investment strategies, and investment philosophies discussed or presented on the Websites each involve their own unique risk factors or considerations; these risk factors are not discussed on the Websites. Visitors should consult with a licensed, qualified investment professional, and/or research the risks involved, before investing: THE COMPANY ACCEPTS NO LIABILITY OR RESPONSIBILITY WHATSOEVER FOR ANY LOSS OR DAMAGE OF ANY KIND ARISING OUT OF THE USE OF ANY OF THE MATERIAL ON THE WEBSITES, OR AS A RESULT OF MARKET RISKS. INVEST AT YOUR OWN RISK.

Merry Christmas!

Friday, December 23rd, 2011

Bearing His Seal

Friday, December 23rd, 2011

2 Timothy 2:19   Nevertheless the solid foundation of God stands, having this seal: "The Lord knows those who are His," and, "Let everyone who names the name of Christ depart from iniquity."

Are you bearing the seal of being THE LORD’s?  2012 will bring unprecedented changes and now is the time to know with assurance that you are THE LORD’s.  My wife and I were inquiring of THE LORD the other day, first and foremost to find out where HE wanted HIS tithe to be distributed.  Each and every month we find out how HE wants the firstfruits to be used.  You see, over the last forty years I have found that giving as Our Heavenly Father directs establishes the grounds for greater prosperity and more giving.  When we are found worthy in being faithful to give, we are deemed good stewards.  We don’t give as a result of being beat over the head with Scripture by a preacher who wants to establish his kingdom, we give to be a blessing to others for we bear HIS SEAL.  Men look for ways to hold and hoard their wealth and take it out of circulation.  They rationalize ways out of being a blessing to others for they claim “Tithing is ‘Old Testament’ and I’m under the New Testament”.  That means they think Our Heavenly Father was somehow different before the Cross.  Every Word from Our Heavenly Father reflects HIS unchanging character of Love.  The intent of every word was to move us to a higher level of life and Love.  Does Our Heavenly Father, the Creator of Heaven and earth, need my firstfruits?  Not really.  After all, HE knows where every ounce of gold and silver are.  HE knows in advance every stock trade that will be profitable.  HE knows the next source of energy that would solve the energy crisis.  So why would HE say:

“The first of the firstfruits of thy land thou shalt bring into the house of the LORD thy God.”

This is an ego-busting statement.  Your ego wants to be in control of every penny you receive from your work, investments, and inheritance.  Money exalts people above others.  The more money you have, the more you think you are entitled to be exalted above others unless you truly give honor to the One who is the Creator of wealth.  By giving your firstfruits, you put your money where your mouth is.  Clearly, Abraham knew this reality:

Genesis 14:18-20   Then Melchizedek king of Salem brought out bread and wine; he was the priest of God Most High.  And he blessed him and said:

​​​“Blessed be Abram of God Most High,

​​Possessor of heaven and earth;

​​And blessed be God Most High,

​​Who has delivered your enemies into your hand.”

​And he gave him a tithe of all.

It is such an immature thought to think we produced wealth on our own.  We were given gifts to generate income and wealth and that decision came before we were formed in the womb.  People who hoard are motivated by fear.  People who give are motivated by Love, faith, and hope.

If you are wondering why you can’t seem to make ends meet, it could be due to your unwillingness to be a giver.  Giving your firstfruits goes against all logic but that is the way Our Heavenly Father designed it.  Your mind is to serve your spirit, not the opposite.  Faith comes before manifestation by design.  When you seek Our Heavenly Father concerning your giving and respond by distributing those firstfruits, you open up the storehouse of the unseen to produce additional manifestation of fruit.  Giving keeps your spirit strong and builds your faith as you see the results.

Several years ago Our Heavenly Father said to me: “Money is a commodity to me and you should view it the same  way”.  Money isn’t scarce except possibly in your checking account.  There is plenty of wealth on this earth for everyone to live in abundance.  The only problem is that the lawlessness has prevented the population from unlocking the key to the abundance.  As the revelation of Love is manifested on earth, the current economic system and assumptions will be replaced.  Witty inventions will spring forth.  Equal weights and measures will prevail and men promote righteous commerce and growth.

Abraham was named “Father of many nations” by Our Heavenly Father AFTER he had received the revelation of tithing, BEFORE the Old Testament laws were given.  When you give with the right heart, you allow Our Heavenly Father to bless you in a greater way and broaden your impact on others.  At first, you may be hesitant to step out in faith.  Seek Our Heavenly Father and HE will assure you and will guide your firstfruits according to HIS perfect plan, will, and purpose.  You won’t ask you to give away your rent money or your house payment.  You don’t have any money?  You can start by giving time.  Giving of your firstfruits is one way of Bearing His Seal.’s John Williams comments on Gold & Silver prices

Thursday, December 22nd, 2011

John Williams publishes government statistics based on raw government-produced data using the government’s own current and past formulas.  This allows the reader to get an “apples to apples” comparison over time.  True unemployment is much higher than the touted numbers by the mainstream media (MSM).  True inflation is also higher.  In the graphs below, SGS is “Shadow Government Statistics”, the way the government measured the rate in 1990.

You may subscribe to John’s newsletter at

In a recent interview:

“Accordingly, as they did in 2008 and beyond, the Fed and Treasury can be expected to guarantee, loan, spend and create whatever money is needed to prevent a systemic failure. 

The long-term cost of these actions remains inflation.  Inflation, however, is likely to be a very near-term effect this time as well.  The various economic and financial outlooks remain as discussed in Hyperinflation Special Report (2011); they will be reviewed in the pending Hyperinflation 2012.

Despite the September 5th historic-high gold price of $1,895.00 per troy ounce, and despite the multi-decade-high silver price of $48.70 per troy ounce, gold and silver prices have yet to re-hit their 1980 historic levels, adjusted for inflation. 

The earlier all-time high of $850.00 of January 21, 1980 would be $2,472 per troy ounce, based on November 2011 CPI-U-adjusted dollars, $8,702 per troy ounce based on SGS-Alternate-CPI-adjusted dollars.

In like manner, the all-time high price for silver in January 1980 of $49.45 per troy ounce, although approached earlier this year, still has not been hit since 1980, including in terms of inflation-adjusted dollars.  Based on November 2011 CPI-U inflation, the 1980 silver price peak would be $144 per troy ounce and would be $506 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.”

I’m maintaining my “insurance policy” in unleveraged hard assets.  You should ask Our Heavenly Father how you should prepare for 2012.

“The Circumcised Heart of Love” now available for the Kindle

Wednesday, December 21st, 2011

Our first published book is now available in electronic form at

I set the price at $1.60 so that anyone with a Kindle would be able to download it for their reading pleasure.  This provides anyone around the world with access to this book.  We have nearly distributed all of our printed copies, a total of about 2,000 and we thank you for your interest and encouragement.  I expect another book to be published from Servias Ministries in the coming year… maybe two.

If you have an IPad, you can go to the App store, download the free App “Kindle”, then download the book through your Amazon account.

The Emotional Side of Investing

Tuesday, December 20th, 2011

I have been an active investor for over 30 years:  Stock, put/call options, futures, etc.  I have experienced the day trading methodology using both public and proprietary technical indicators.  Additionally, I wrote  technical indicator software to use on my Tradestation in an effort to generate greater daily profits.  There is one thing that is tougher to overcome than any other trading obstacle: emotion.  The following provides perspective:


This graph says it all.  Prices go up and down, our emotions go up and down.  If we can focus on the Words of Our Heavenly Father, our emotions will be held at bay.  If Our Heavenly Father says to invest, then do it.  If you ask Him and get no answer, then don’t.   How simple is that!  I can hear you saying “I have trouble hearing Him” or “I’m not sure those were His Words”.  This is why we must focus on HIM and not on us.  As we move towards the Throne of Our Heavenly Father, we will hear more clearly.  As we focus on Love, we take on HIS character and our ears will open and our eyes will see.

The True Purpose of Wealth

Sunday, December 18th, 2011

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.”

The true purpose of wealth is to establish Our Heavenly Father’s Covenant of Love.  Many Christians want wealth but for the wrong reason- consumption.  Only after they have met all their own needs are they interested in fulfilling their part of establishing Our Heavenly Father’s Kingdom.  “Self” takes and consumes whereas Love gives.  We are to exercise faith in the context of establishing the Covenant of Love not for self-motivated acquisition of material things.  As we change our focus outward, we place ourselves in a position to exercise our faith to establish HIS Covenant.

Faith is Love in action.  When we hear a Word from Our Heavenly Father, the universe is being mobilized to bring forth HIS Word.  Resources are now ready to respond to your acting upon His Word.  Hope is the expectation of manifestation that is established when His Word is spoken.  Now it is time for you to do your part- act!

Think not that your business acumen is the reason you have money in the bank.  I have seen fortunes of men come and go.  We have all  heard stories of men making millions only to lose it all and start all over.  Those are the men who knew how to utilize their gifts but did not know or realize their GOD-given purpose or calling.  Their lawlessness was at the source of their riches being ripped away from them by a universe kept in balance by Love.  Love will not perpetuate lawlessness but will correct the lawless person in an effort to restore him or her to Our Heavenly Father.  Lawlessness cannot approach the Throne of GOD but a restored son or daughter can.  Christians often wonder why heathens have the wealth.  They are vessels used by Our Heavenly Father to steward over those resources until they are needed.  It is clear that Our Heavenly Father has no problem in using anyone HE has created to fulfill  HIS purpose on earth.  There are vessels of honor and vessels of dishonor.  I choose to focus on the former.

Our Heavenly Father has had my wife and I give to those who we really weren’t interested in giving to for various and sundry reasons.  HIS directing of money often exceeds our comprehension.  “He’s lawless and you want me to give how much?”  “She’s just a controlling and manipulative person and you want us to help her out?”  Let’s face it, those questions enter our mind when Our Heavenly Father tells us to give.  We can’t see what is truly in the heart of the person but Our Heavenly Father knows.  HE is in the business of restoration and has selected those who are willing to establish His Covenant of Love to be the “boots on the ground” to direct HIS assets to those in need.  We lose out on a blessing when we rationalize away a command to give by Our Heavenly Father because we don’t think the person needs or deserves the money.  It is an attempt by the ego to exalt itself above Our Heavenly Father.

The tithe is not your money.  Ouch!  The tithe is Our Heavenly Father’s and if HE wants to give it to an apparent undeserving recipient, chill out!  HE’s got it all under control.  If HE wants to give to the wealthiest person you know,  don’t sweat it.  HE is planting HIS seed to overtake and consume all other seed.  HE is looking for obedience in Love, not just compliance.

  Over the years, I have found Our Heavenly Father faithful to supply all of my family’s needs according to HIS riches and Glory.  In order for us to be used in establishing His Covenant we must have faith, hope, and Love. But the greatest of these is Love!

My Yearend Defensive Strategy Checklist

Saturday, December 17th, 2011

This yearend is unlike any yearend of the past.  In the past, most of us have closed out our year thinking about Christmas gifts, last chance deductions, and what to do on New Year’s Eve.  Not for me this year.  The question now is “Am I prepared for the worst case scenario- economic chaos?”  I am not an alarmist but I am not a cow that wants to be led to the slaughter house.  Little did I realize the importance of my Degree in Economics obtained some four decades later.  We were led to believe that the U.S. was a “free market” economy.  Wrong.  We were led to believe public servants served the public.  Wrong again.  We were led to believe that those elected officials would strongly defend The Constitution.  Sorry, only when it is convenient.

The global economic system is in total disarray.  The banking system has financial landmines that would rival the fields in Cambodia.  Political pressure to hide losses inside the balance sheet of major banks creates a credibility gap bigger than the Grand Canyon.  When central banks around the world make a concerted effort to provide liquidity, this would indicate a larger problem than the average person can imagine.

Since governments control the system by creating money out of thin air, major resources in the economy are redirected from the productive and innovative private sector to the totally inefficient and bureaucratic public sector. The public sector only consumes wealth.  Nothing but promises are produced. By taking critical resources from the private sector, consuming most of what it takes and then giving the rest to the most unproductive part of society (entitlements), governments perpetuate the worst part of the economy and destroys the ability of the nation to expand via the private sector.  In the past, the private sector could overcome the drag of government.  But now uncertainty has replaced the willingness of the risk taker to invest in long-term projects.  Artificially low interest rates have sent the caution signal to management as an indication of further weakness in the system.  Europe will see bank failures in 2012 and nobody knows how serious it could get for the average guy.  Never in the history of the world are there so many countries with serious fiscal problems all at once.   There is no economic book or white paper to refer to.

The interconnectedness of the global financial system may have been a good idea in theory but now some catastrophic event 5,000 miles away can affect you and me.  If things get ugly, the politicians will be in the bunker looking at us on their closed-circuit TV’s.  Self-preservation is the one consistency among most of the world’s politicians.

So with that said, my strategy is as follows:

1. Keep my communication lines open with Our Heavenly Father.  HE is the Merciful One.

2. Look in the mirror to see if there is any denial that needs to be dealt with.

3. Forgive everyone.  You don’t need any bitterness when you brother is in deep trouble.

4. Check the pantry.  Make sure you have plenty of non-perishable food on hand.  It’s better to have too much than not enough.  If by some miracle financial system survives the next 60 months, you can donate extra food to a food pantry.

5. Make sure you have good, durable clothing to handle the elements.  Power outage are occurring more frequently and you should be prepared for substandard response time to outages.

6. Keep extra cash available in a safe place in case of a “bank holiday”.  Notice how they put a positive spin on a disintegrating situation?  Holiday?  Not for you or me.  Generally, the small print in the signature card you signed at your financial institution includes a right for the bank to hold your money for up to 30 days or more.  Since it has rarely been exercised, people have grown accustomed to the assumption that they can access their money at any time.

7. Minimize debt and do not add any more.  Cash is still king.  If you can’t pay cash, you probably don’t need it.  “That’s what my momma always said.”  Oh yes, she grew up in the last Great Depression.

8. Hyperinflation is more than a 50% probability in many countries around the world.  Don’t assume it won’t come to the shores of the U.S.

9. Hard assets will preserve value.  I have begun the direct registration of stocks held in my broker account.  I don’t want a middle man with potential fraudulent intent to compromise my ownership position.  MF Global comes to mind.

10. Make sure your property taxes are paid up and you have enough reserves to pay them for at least 36 months.  You just thought you owned your house.  The taxman can confiscate property if necessary.

11. Make sure you pay the IRS monies owed.  As long as they have power and authority by statute to collect tax, pay the tax.

12. For the hundredth time, simplify.  If things get tough, all of the big boy toys will be of no value.  That goes for you “big girls” as well.

13. Ask Our Heavenly Father what you should do with your retirement account.  I cannot advise you on your investments but Our Heavenly Father can and will.

14. Encourage your family and friends to follow similar defensive moves.

15. Express an attitude of gratitude daily.

16. Walk the Love walk!

In 2017, I would like to reflect back and see that  the steps I took turned out to be unnecessary, but I don’t think that will be the case.  Be vigilant!

Major Storm is at our doorstep

Friday, December 16th, 2011


Peak oil is no longer a debate for the facts support this reality.  Technicians at the highest level simply assumed that the technology silver bullet would continue to enable us to find new reserves.  Wrong!  Economies run on energy and expansion requires additional energy.  The easy to find oil is gone and the expensive oil is reflected in the $95+ price reflects this.  Global oil production has plateaued since 2004, even with the high prices in the triple digits.

The assumption that technology will solve the energy storm is wrong.  Technology has improved extraction but it does not create new deposits.  Yes, there may be some large fields yet to be found but extraction won’t be easy.  Jed Clampett of the Beverly Hillbillies is not going to discover another large discovery of shallow oil by gunshot.  Depletion is barely being offset by new production but that offset is becoming increasingly difficult to achieve.

We are not out of oil but the extraction is more difficult.  These costs are going to superimpose themselves on the current recessionary pressures challenging global growth.  The fragile financial system cannot afford another source of resistance to recovery.

Once the market smells the rain in the air, prices will move upward and test $147 per barrel.  Once this barrier has been broken, $200 is not far off.


If I were in charge of making my currency look good and I had the authority over printing money and could direct agents to buy and sell gold without concern of legal prosecution, gold would be moving downward in the Christmas season.  My goal would be to make gold look like it was going to head south for the winter.  If I can shake the confidence of the gold bugs then they will help me move the price further down with their emotional selling.  With my high powered servers, I would simulate a technical “crash” for all those traders who use all the standard technical indicators to buy and sell.  I would paint their charts to create a sell signal for gold and the underlying gold shares.  The problem arises when China and India are on the other side of the transaction using their agents to buy on the dips and with the money they got from me by selling me trinkets and flat screen TV’s.  My focus is on the short term, no further out than November of 2012 when the elections conclude.  Their focus, on the other hand, is 10 to 100 years.   My focus on the futures market to move the entire market, an idea first penned by Walter E. Heller, as worked well in the past.  If we can just keep the wheels on the car for a little while longer!  Do I have a wild imagination or what???