Archive for March, 2012

Contraction/Expansion Cycles & Waves

Saturday, March 31st, 2012

A fundamental expression in nature is a wave.  The following image provides a simple expression of a measurable wave:

However, waves can also rotate as shown below:

Cycles are a reality of life and at the most fundamental level we observe expansion and contraction.  Muscles are developed by expansion and contraction, stress and rest.  Our sleep patterns are cycles to allow us to be restored on a daily basis.  Economies work the same way.  Men do not make perfect decisions on expanding their business.  Some ideas simply fail.  Financial capital is directed toward those ideas and pursuits and they don’t produce the expected fruit.  Just as with a plant, you must prune away the unproductive branches for they are using resources the fruitful branches need.  It is also true with a nation’s economy.  Extended expansion needs an offsetting contraction.  However, politicians in their quest for power try to keep the economy in an expansionary mode in order to get reelected.  Since most citizens don’t understand the need for contraction, they oblige by reelecting the politician who promises them a rosy future.

As an entrepreneur for the past 27 years, I have grown accustomed to the cycle.  There have been lean years and there have been exceptional years.  Throughout those years, we have learned to live below our means.  It is easy to live up to a higher income but it is brutal when you attempt to contract your family budget.  However it can be done.

America has over-expanded for the last few decades and the piper wants to be paid.  The only question will be how much economic carnage will occur.  Historically, other economies crashed and burned after they attempted to do the same thing.  The world did not end but there was extreme pain.  This time looks no different.  Those who have followed this blog have been encouraged to downsize their needs and budget, get out of debt, and minimize financial risk (if possible).  Only Our Heavenly Father knows the timing when the unraveling will be in full swing.  That is why I encourage readers to seek HIS Face.  HE can and will guide each of us through the tumultuous times.  Love and peace will sustain us individually as the contraction gets into full swing.

S.W.I.F.T. System Global Mistake

Monday, March 26th, 2012

SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a member-owned cooperative through which the financial world conducts its business operations with speed, certainty and confidence. More than 9,000 banking organizations, securities institutions and corporate customers in 209 countries trust us every day to exchange millions of standardized financial messages.  This system is integral to the global flow of funds and the U.S. and EU have decided to use is as a tool of war against those trading with Iran:

How would you like to be threatened by having your bank account and credit cards frozen?  This is effectively the same act against a country.  How would you survive?  You would have to be paid in cash or agree to trade work for food, etc.  When this happens to countries, they form a bilateral trade agreement to exchange their currencies at an agreeable rate of exchange directly.  This has the effect  of removing the U.S. Dollar as the world currency.  As that happens, the demand for U.S. Dollars will diminish and the market for U.S. debt will begin to dry up unless the interest rates rise.  As that occurs, the U.S. deficit will worsen.  It does not look good.

What are these guys thinking?

Reckless Endangerment

Sunday, March 25th, 2012

The following podcast explores the most fundamental Biblical aspect of economic exchange in society, equal weights and measures.  Biblical Law demands impartiality, independent of your financial status and influence.  Once the imbalance occurs, the rule of Law is compromised and once that occurs, deterioration of society accelerates.  The Rule of Love will ultimately replace the environment in which we find those imbalances.  Our Heavenly Father will ultimately reconcile the “books” and evoke judgment based on righteous Love.  The following interview is but one aspect of the imbalances that plague society today:


Comprehending the breadth, and length, and depth, and height

Friday, March 23rd, 2012

These are tumultuous times.  The economy is in a slow motion train wreck and it is mathematically impossible to sustain our current economic course.  There are many with good intentions attempting to muster up a solution to the crisis.  The problem is simply too big to grasp.  There will be carnage when the train concludes its destruction.  People are trying to return to the idea of the original republic here in the U.S.  Though a noble cause in itself, I am convinced that going back is not the answer.  We must move forward and whatever we move to must meet certain criteria.  It must consider every man, woman, and child.  Food, shelter, and clothing are basic fundamentals required to sustain life and every person should have those necessities.  But how?  Where can we find the answer to all of the complex issues we face today?  Our society has become so complex that no one person can cover all of the bases in charting a path of restoration to the values we all hold dear.

Now is the time we should be seeking the Face of Our Heavenly Father in earnest!  It is time to quit going through the motions and shed the persona of being a politically correct Christian and seek the fullness of Our Heavenly Father!  But how?  We must be rooted and grounded in Love.  Right now, we are mentally challenged with the illusion of permanency of the current path of complexity.  We are being bombarded with technology that demands our time, time better spent seeking the Face of Our Heavenly Father.  We are like the proverbial frog in the soon to be boiling water.  The outcome on its current course will not be pretty.  Mothers will be crying in their pillows when the dung hits the fan.   Desperation will replace peaceful logic when men can no longer provide for their family.  Pain is coming, the only question is “How much?”

To comprehend the breadth, and length, and depth, and height of the Kingdom of GOD, we must be rooted and grounded in Love and walk in faith.  Our faith responds to Our Heavenly Father’s Word and we act upon His word in faith.  By responding in Love, we will open Heaven’s door with the Key of David.  Our comprehension of Our Heavenly Father’s plan will come into focus.  We will no longer seek some intellectual think tank for answers, for theirs was simply a carnal opinion with the bias of their upbringing and education.  The only true solution to the future of this complex planet is found in Heaven.  There is but one path to take, it is called “The Way”.  It is the way of Love.  It is found by seeking the Character of Our Heavenly Father and as we do, He is quick to respond with the needed wisdom, understanding, knowledge, and skill to navigate through this time of transition.  Ephesians 3 states:

14 For this cause I bow my knees unto the Father,

15 from whom all fatherhood in heavens and on the earth is named,

16 that he give you, according to the riches of his :glory, to be made mighty through his Spirit unto the inward man;

17 that the Christ dwell in your hearts through faith in love, rooted and grounded,

18 so that ye be strong to apprehend with all the saints what the breadth and length and depth and height,

19 and to know the love of the Christ which passeth knowledge, that ye be filled unto all the fullness of God.

Buying Scarcity with Infinity

Thursday, March 15th, 2012

Warren Buffett recently posed the question, “Would you rather own all the farmland in the U.S. or own gold?”  Most of us would say farmland since we know that it would produce food to be consumed by society.  However the better question to ask is, “Would you rather sell your farmland for gold or a fiat-based currency that was printed out of nothing?”  Would you rather auction off a scarce commodity and receive gold or US Dollars or Euros?  Since the US Dollar has lost over 90% of its value in the last 50 years, why would you want to sell a producing asset for a declining asset?

The recent drop in gold, silver, and related stocks is a buying opportunity for those who believe the above paragraph.  With the long term decline of a fiat currency, gold becomes a productive asset in its relative rise in value.  Gold and silver mining companies will soon return to the “utility company” status they once held during the Great Depression.  Their dividends will be similar to utility companies.

There is total denial that the Greek default will have a substantial impact on the global banking system.  The Euro is in deep crisis.  Portugal and Spain are the next targets for this contagion.  The losses are a real threat to the banking system.  Youth unemployment in Greece is at 51.4%.  80,000 Greeks attempted to storm the government buildings recently.  Greece has contracted by 15% and is contracting by 7% this year.  How many countries can contract by 25% and reasonably recover in the short term?  The Rule of Law is disintegrating in Southern Europe.  People are now terrified of the unknown.  The mainstream media would have us believe that all is well.

The Power of Words

Wednesday, March 14th, 2012



Doer of the Word

Monday, March 12th, 2012

James 1:22  But be ye doers of the word, and not hearers only, deceiving your own selves.

To be a doer of the Word, you must walk in Love for the intent behind the Our Heavenly Father’s Word is Love.  HIS Laws are fulfilled by Love,  HIS Son’s actions were based on Love… It’s all about Love.  How do you apply the Word to business?  It is simple.  Love your employee as you Love yourself.  Love your customer as you Love yourself.  Both your employee and your customer are your neighbors as well.  American business has generally lost this principle.  Love serves the other person whereas greed exploits that person.

Based on a book written by the CEO of the Gallop Poll, the number one priority of people around the world today is that they simply want a real job.  A real job is one where you work at least 30 hours per week creating income.  Let me further add that a real job to a person is one that utilizes the gifts instilled in that person and that fulfills the calling of that person.  That my  friend is a Kingdom job.

How can you find a Kingdom job?  You must find a Kingdom company or enterprise.  I believe there are companies that have some of the principles of Kingdom enterprises out there but there is no major enterprise that can be called a Kingdom company.  Founders of some of the largest corporations started out with some of those principles but after their passing, the vision died with them and those corporations succumbed to the greed of big business.

“Thy Kingdom come, Thy Will be done” is prayed millions of times every day all around the globe yet where are all the Kingdom enterprises that reflect “Thy Kingdom come”?  Is there a Fortune 100 company that is known as a Kingdom enterprise?  Are there not enough assets to start a Kingdom enterprise?  What’s the problem?  I would suggest that there has been a lack of unity.

The 276th verse of Scripture is Genesis 11:9:  Therefore is the name of it called Babel; because the LORD did there confound the language of all the earth: and from thence did the LORD scatter them abroad upon the face of all the earth.  276 represents The Flesh, Satan, Babylon.  Babel or Babylon = "confusion (by mixing)".  Men without the Word of GOD were observed to be in unity at the tower of Babel.  What was Heaven’s response?  “And the LORD said, Behold, the people [is] one, and they have all one language; and this they begin to do: and now nothing will be restrained from them, which they have imagined to do.”  Man in unity without the Word could have done anything they imagined as long as they could communicate.  Just consider what would happen if men were in unity AND doers of the Word of GOD.  Nothing would be restrained for The Lord’s Prayer would move toward fulfillment.

To form a Kingdom Enterprise, Scriptural principles must be at the foundation.  Love must be the guiding force for unity of the brethren to rally their resources to support such an enterprise.  We all call ourselves stewards of HIS wealth.  What if Our Heavenly Father gave the call for the true Temple to be built?  Who would show up ready to embrace that call?  Our Heavenly Father can “muster” the resources in one day if needed but I believe HE wants us to respond to the Word and be a Doer.  I sense the call is coming soon.

The Greek Tragedy: Part 2

Sunday, March 11th, 2012

Now that one bond group of Greek obligations has defaulted, we must consider the other groups that have yet to experience a cash transaction requirement.  Until a bond is at redemption or an interest payment is required, it has not legally defaulted for nonpayment.

Bank bonds, Hellenic Railway bonds, Urban Transportation bonds, etc. will all be impacted by default.  How big will the line be tomorrow as all Greek bondholders seek to make their insurance claim?  This reminds me a slow motion train wreck.

The Greek Tragedy: Part 1

Saturday, March 10th, 2012

In recent blogs I have reported that the ISDA had attempted to redefine the Greek default.  Yesterday afternoon, their tune changed, by necessity.  Moody’s has stepped in and called the event a default.  The ISDA responded that a “credit event” had occurred:

“LONDON, March 9, 2012 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee resolved unanimously that a Restructuring Credit Event has occurred with respect to The Hellenic Republic (Greece).”

“The Committee determined that an auction will be held in respect of outstanding CDS transactions on March 19.”

An auction?  Huh?  I look for the buyers at the auction to receive funds for settlement that would trace back to a Central Bank.  It will be interesting to watch this play out.  The stakes are high and will potentially affect everyone no matter where those losses are absorbed.  The current system is crumbling and the Emperor really has no clothes AND he is standing next to the elephant in the room.

Did Greece default on their debt?

Friday, March 9th, 2012

Greece averted bankruptcy be convincing their bondholders to take a 53.5% loss on the face value of their existing bonds.  See:   The ISDA will not have to honor their default swaps for now.

Let me get this straight.  Last week I had a bond worth let’s say $10,000, and this week it is worth $4,650.  Am I suppose to believe that someone didn’t default on their original obligation and my insurance won’t cover this loss?  Man’s laws have been so perverted that anything goes in the financial arena.  Soon, the general population will wake up and realize that their retirement funds may not be worth what they thought.  How long can this continue?  Haman in the Book  of Esther thought all was well the week before he was hung.  Happy Purim!