Servias Ministries Blog

http://www.usdebtclock.org/

It appears the US Department of Transportation’s Trust fund is running out of money.  People are not driving as much thus the road tax revenue continues to dwindle.

Shadowstats.com reports:

Down for the Month, August Existing-Home Sales Were in Tenth Month of Annual Decline

Durable Goods Orders Crashed 18.0% (-18.0%), Reversing July’s 22.2% Surge, Dominated Again by Irregular Commercial-Aircraft Orders

The primary reason this lengthy recession does not look like the 1930’s is due to the difference of infrastructure and government assistance payments.  Social Security was enacted in 1935 and has grown ever since.  In 2011 some 49.2 percent of U.S. households received benefits from one or more government programs—about 151 million out of an estimated 306.8 million Americans—according to U.S. Census Bureau data released last October.  Where does the money come from?  Out of thin air.  How much longer can this be sustained?  Only Our Heavenly Father knows.

During the election cycle, you can assume that no negative economic numbers will make the headlines.  Afterward, look out!

Answers to the economic challenges ahead can only be found from Above.  If men were smart enough to figure it all out, they would have already implemented the solution.  Any band aid will only deal with the symptom, not the underlying problem.  We are in truly uncharted territory in this current system.  However, there are no surprises in Heaven.

On Sunday Morning, September 14th, FATHER spoke to me about the Iraqi Dinar (IQD)  held in the treasury at Servias Ministries.  HE indicated that it was time for it to leave the treasury.  We have held the Dinar for over two years, faithfully safeguarding it.  There are two aspects to a treasury: receiving and distributing.  At any rate, FATHER told me it was time to remove it from the treasury and it was to be distributed to God’s Kingdom Ministries.  I started considering “when” and HE said “Now”.  That Word prompted me to immediate action and we delivered the package at precisely 2:10 PM on 9/18 in Fridley, MN.  The mission was complete after 1,700 miles, we were home by 11 PM on Friday.

I have had many calls concerning the IQD over the last few years.  Each time I would reply that I have no revelation concerning its revaluation.  It is not my revelation thus I have no position concerning its future.  As I have written in the past, I do not believe the current economic system will be fixed, but instead it will be replaced by FATHER’S economic system.

Over a decade ago I was given certain ancient artifacts valued at $350 million to be held in “safekeeping”.  I faithfully watched over them and then one day Our Heavenly Father instructed me to distribute them back to the owner.  I did so.  Was it a test?  Of course.  It seems to be a parallel to the current instruction.

Is the potential windfall of the Iraqi Dinar a test?  Clearly.  In the end, each of us must look at the whole IQD event in relation to what personal intent surfaced from the heart and thoughts.  The potential windfall reminds me of the many trips I took to Europe in an effort to fund infrastructure projects for third world countries.  When large sums of money are on the table, the deepest intent within the heart of man is exposed.  The love of money was often found to be the “deal breaker” when the funding failed.  In the meantime people continued to be in great need.  Many plans were made with the expectation of success.  They were mothballed.  Those trips provided a notable education and  FATHER spared no expense.

Our Heavenly Father prepares HIS people before providing the resources.  The internal precedes the external, not the opposite.  Think about it.  To this day, I have no position on the IQD.

All of the current systems in place (political, economic, religious) are based on man’s carnal intent.  The old man seeks to control and dominate others whether it be by use of emotion, physical power, mental power, or monetary restriction.  The old man seeks to place everyone into bondage and submission.  On the economic front, this is done by which currencies are acceptable and your access to them, even if you have claim to a portion.

A bank holiday is designed to restrict you from your money.

Credit and debit cards are designed to exert control over you in a moment’s notice, no matter where you are at.

Online banking is convenient until you don’t have access via the Internet.

Your money in the bank is not yours, it is a claim.

Stocks in your brokerage account are not yours unless physical certificates are issued in your name, otherwise you only have a claim.

Martial law is designed to restrict your movements.

Border control is designed to keep you in or out whichever the case may be… even if you are a citizen.

Legislation against enemies of the state is now broad enough to circumvent any personal rights.

The simple reality is this: the guy with the gun, the badge, and the prison is the Law.  How are we to respond?  Live peaceably and know that in the end Our Heavenly Father will prevail over man’s carnal systems.  In the meantime, pay your taxes, abide by the law, and be above reproach knowing that the system will only get worse and lawlessness will increase as the Sons are being prepared.  Don’t let your emotions get the best of you but focus on the Word of Father to sustain you as things get dicey out there.  As we are led by the Spirit, HE will navigate us through and protects us from the prevailing lawlessness.  Don’t expect the current system to get fixed.  The train is moving rapidly toward the cliff and the only real solution is found in Heavenly Places.  That is where we must place our trust.  When will the dung hit the fan?  Father knows, everyone else is simply guessing.

At a joint press conference September 3 with Estonian President Toomas Hendrik Ilves, Obama declared, “So I’ve come here, first and foremost, to reaffirm the commitment of the United States to the security of Estonia. As NATO allies, we have Article 5 duties to our collective defense. That is a commitment that is unbreakable. It is unwavering. It is eternal.”

See:

http://politics.suntimes.com/article/washington/obama-estonias-ilves-joint-press-conference-transcript/wed-09032014-900am

There is a provocation to pull Putin into war by placing NATO forces on Russia’s border.  Coincidentally, the BRICS countries are in the midst of moving away from the US Dollar for payment settlement of oil & gas.  Iran, Iraq, and Libya all attempted the same strategy.  Will the western response be any different this time?

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Financial leverage is using borrowed capital (money) for an investment, expecting the profits made to be greater than the interest payable.  The most common instrument of leverage for most of us is the mortgage note.  We expect to buy a house with a mortgage, pay interest, and at some point in the future sell the house for more money and benefit from the tax breaks.  We are told by the experts that these benefits will far exceed the cost of interest expense as well as upkeep.  On the other hand, renters do not participate in leverage.  They simply pay each month for the right to live in the dwelling.  The risk of investment is placed on the owner.

The Federal Reserve perpetuates the path of inflation by increasing the money supply.  This supports those who use leverage in their investments.  In the past, leverage was held at bay by the lender’s restriction of loan to equity ratio.  How much money does the borrower have at risk as a percentage of the entire investment?  Historically a 20% down payment was preferred.  This meant that your leverage was 5 to 1.  A 5% down payment meant your leverage ratio was 20 to 1.  High leverage meant that borrowers must pay mortgage insurance added to their monthly payment to insure the borrower against losses.  As long as house prices continued to climb, everyone was happy.

What happens when real estate prices begin to drop due to lower demand?  Suddenly you owe more on the house than it is worth.  You are now paying interest on “nothing”.  In the last real estate bust, many just left the keys and walked away from the loss.  They lost their perceived equity but were no longer paying for something of less value.  When enough people do this, the lender becomes insolvent because the lender also utilized leverage to loan the money.  If the lender is a bank, the money lent may have been depositor money, assumed to be stable deposits.  The system has been based on the perception of stability.  The lender looks for stable and reliable borrowers.  Depositors look for stable and reliable banks.  You get the picture.

Relaxing lending requirements allows the leverage ratio to increase thus increasing the overall risk to the lender or investor.  The Regulator’s job is to insure prudence in this area.  Guidelines are established to protect the parties in question.  However, Bill Clinton wanted more people buying houses so he pressured the regulators to allow greater leverage ratios and at the same time virtually eliminated the creditworthiness requirements of borrowers.  The “no money down” loans began to spring up.  “No income required” loans also came into the picture.  The large banks were given a blank check to invest in anything that would stimulate the economy.

The current leverage ratio of paper gold investment to the actual physical metal is reported as being about 100 to 1.  For every one ounce of gold there are 100 ounces of paper claims against it.  This is one aspect of the “derivative” bubble we are now in.  Once people decide to demand physical gold for their paper, the price of gold will skyrocket.  This happens when the investor decides to de-leverage and reduce his “paper” exposure.

What would happen if all investors decided to move to cash and out of their leveraged paper investments?  A massive implosion.  If you hold a claim on an asset, that does not necessarily mean you really own the asset.  This is actually true of your money in the bank.  They are not actually holding your particular cash in a box for you, you hold a claim to an asset.  You are an unsecured creditor of the bank.  If things go too badly, you may not receive all your money back.  If you too are leveraged, you may get stuck in the middle of an implosion.

Seek Our Heavenly Father on your particular situation.  HE is the only One who is certain about the future.  For everyone else there are three questions due to uncertainty:

1.  When will the current unsustainable path of leverage implode?

2.  What will the chaos be like?

3.  How do I position myself for the chaos and the resulting system?

If each of us places our trust in Our Heavenly  Father and follow HIS Wisdom, we will do just fine for HE will navigate us through the muck and mire.  Those that don’t will suffer.

The war drums appear to be getting louder:

http://www.globalresearch.ca/the-russian-aggression-prevention-act-rapa-a-direct-path-to-nuclear-war-with-russia/5397171

Is there anyone who believes in the low inflation numbers being touted by the  government?  On our recent trip to the Seattle area, we wanted to take in the sights.  From Pike’s Market in downtown Seattle to Snoqualmie Falls, 30 minutes east of Seattle, the attractions were packed.  My cousin was our tour guide for the Snoqualmie Falls trek.  She made a reservation at Salish Lodge to have a late breakfast at Salish Lodge, known for their steel oats.  How  much could a bowl of oatmeal cost?  I found out and the waiter didn’t even apologize.  I thought to myself “Does this include a souvenir as well?”.

Real estate prices continue to soar as retail chains continue to downsize.  The stores at Pike’s Market were crowded but not that many people appeared to be buyers, most were just lookers.  Starbuck’s first store (circa 1971) was packed.  Very few people were buying the high-priced fish at the market.  Gasoline hovered at $3.90 per gallon.  All is not good on the economic front.  Shadowstats.com’s inflation rate of 9.7% is much more accurate than the headline inflation rate of 1.9% put out by the government.  I’m not sure what planet they report from.

The retail sector continues its decline.  They are heavily discounting, attempting to get some traffic.  Dollar stores are merging which is not a good sign.  More and more dollar menus are cropping up and restaurant chains are heavily marketing “dinner for two” deals.  The following graph provides the real story of where the U.S. economy is at:

China’s industrial output has been showing weakness as well.  Germany has shown signs of contraction.  The cheap money has helped the top 1% but has left the middle class behind.  The U.S. economic engine has just about sputtered out.  When this happens, the central planners try to put us into another war.  All the signs point to chaos ahead.  Love is the only answer to the current woes and at some point people will wake up and smell the flowers.  In the meantime, deleverage and simplify.  Don’t let “stuff” rule your day.

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.

This is the U.S. Labor Participation Rate

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

This is another confirmation of John Williams’ statistics.