Servias Ministries Blog

EBT means “Electronic Benefits Transfer”.  This card has replaced “food stamps”.  The following quotes tell the story:

“And so we’re still seeing that midnight shopping in our stores when that EBT card, it’s like a debit card, when it is ready and it is funded, there are people who are in the store at midnight because they know it turns on. And they have shopped from like 10:45 to midnight and they’re waiting for that card and then our lines open up. And we’ve had some of our busiest hours at midnight.” — Rosalind Brewer, Executive Vice-President, Wal-Mart

“I think the most telling indicator for us that economic weakness and employment is the key issue driving soft volumes, is the fact that we continue to see, as – in contrast to the historical norms, we continue to see volume pick up heavily at the beginning of each month, and then steadily erode through the month, being particularly soft in the last week to 10 days of the month. That just tells us that people are running out of money.” — Gregg Engles, CEO, Dean Foods

Last week, I went into Sam’s Club to pick up a few items.  I was amazed that in the middle of the week and around lunch time, the place was packed.  Lines were long and carts were full.  A lady with her adult son and granddaughter were ahead of me.  You could not get one more grocery item in her cart, it was stacked high.  When she paid, I found out why… the EBT cards.  Yes, the adult son paid for part of the items with his card, she paid for the rest with hers.  There was a small amount due, probably items that did not meet the EBT criteria.  She pulled out cash to pay the difference.

Yesterday, I saw a couple at the local Homeland store using their EBT card and try to “double dip” with coupons.  The cashier explained the policy to them against using more than one coupon per household for a particular item.  This man did not appear to need an EBT card, neither did his wife.

Transfer payments have passed the 51% relationship versus the American working force.  We now have more people receiving government assistance than we have workers.

Shadowstats.com’s John Williams states:

“Now into the second-half of 2014, the broad outlook for a hyperinflationary great depression—beginning this year—has not changed, but it has evolved, with various details continuing to fall into place, such as the renewed downturn in domestic economic activity.”

Here is how the American Entitlement Bubble is currently staying afloat:

1. U.S. Treasury issues new debt

2. Federal Reserve creates money out of thin air and buys a net 88% of the new debt.

3. EBT Cards are loaded each month with borrowed money from #1.

4. People go to Walmart and other stores to buy food and pharmaceuticals.

5. Those large corporations report positive earnings and their stock prices stay up.

6.  Workers’ income tax receipts pay on the outstanding debt and other government services.

7.  Financial news media report stable earnings by those large corporations in #5.

8.  The Dow Jones Averages hit new highs thus creating a “Wealth Effect” for those with stocks in their portfolios… “All is okay”.

9.  The CEO’s receive bonuses for doing so well as their company’s stock values stay up.

10. The CEO’s fund reelection of those politicians who support #1,2, and 3.

11. The Federal Reserve keeps rates low enough for the public corporations to buy back stock and pay less dividends out.  They also receive a tax break.

12. The middle class receives less interest on their life savings due to #11.

13. The middle class starts using up savings to live on.

14. At some point, the middle class family applies for their EBT card so they can eat.

15. More EBT cards means that the U.S. Treasury needs to fund the outflow with more debt.  Go to Step #1

The 64 Trillion Dollar question is: “How long will investors tolerate the creation of money by the Federal Reserve thus depreciating their current investment valuation?”

When one major player heads to the exit, there will be a stampede.  Only Our Heavenly Father knows the day and the hour.

When the head guy issues a warning, you might want to consider that it could occur sooner rather than later.  This is a classic “CYA” move.  He mentions what I have been warning about:

– The global financial system is currently “more fragile” in many ways than it was just prior to 2008.

– Debt ratios are now far higher.

See: http://etfdailynews.com/2014/07/13/the-head-of-the-central-bank-of-the-world-warns-that-another-great-financial-crisis-may-be-coming/

The most interesting number to me is “16”, the number of Love.  Love will ultimately have its way:

Focus on Love and everything else will play out accordingly.  A global currency reset is “small potatoes” in the biggest of pictures.

Debt is soaring around the world.  The stock market is soaring and things are getting crazy.  Six years of zero percent interest rates are devastating the middle class.  48,000,000 people are on food stamps in the U.S. 11,000,000 people are on disability.  The jobs report looked good until you look at the numbers behind the numbers.  All of the growth was in “part-time” jobs (800,000).  Full-time jobs are declining (500,000).  The net effect was an increase of 300,000.  Put some more lipstick on that pig please.

In Iraq it continues to get ugly.  Syria is concerned.  Saudi Arabia is too.  The turmoil could affect the price of oil and push it up dramatically.  The goal of the printing press is to make everyone feel good and overlook all of these problems.  The U.S. armed the Syrian rebels and they became ISIS.  We are now fighting them.  The geopolitical arena is so fragile, there are many black swans that could burst the money bubble.

As the debt increases, men do insane and desperate things.  China borrowed 15 Trillion Dollars to build infrastructure that may never become economical.  Ghost cities will degrade over time.  The risks are high everywhere.

When will the bubble burst?  Nobody knows.  When the bubble pops, governments will go bankrupt.  How will it go down?  Nobody knows.  Some believe that hyperinflation will kick in.  Others believe that a deflationary collapse will occur.  The average guy will be the one who will suffer the most pain.

We have been convinced by the car dealers to take out 96 month car loans since everybody needs a luxury SUV.  Hardly anybody can afford 36 month loans anymore.  Students are borrowing huge amounts to get a degree that may never support a payback plan.  The population has deferred the economic pain of compression.  Will we have a Great Depression II or a Weimar Republic hyperinflation?  Maybe both, one after the other.

The Ponzi scheme continues because the money printing press has deferred the ultimate reset.  The longer it takes to reconcile the “books”, the more severe the overall pain.

Social unrest will come.  High density population areas will be susceptible to the greatest social unrest.

Move toward self-sufficiency.  Lower personal expenses/cost of living.  Become indispensible at your job (if you have one).  As I continue to preach:  Simplify.

Man’s ego will be “popped” once again.  Everyone will ask “How did this happen?”  The ego “caused the mouth to write checks the body could not cash”.  I know I sound like a broken record but this is no different than the years before the tech bubble popped.  It is no different than when the real estate bubble popped.  We are now in the “mother” of bubbles.  It will get ugly for those who have their trust in the ways of the world.  There is a vast majority in that boat and it will eventually sink.  The solutions to all of the coming challenges will be found only from Above.  The revelation of Love will be the key to opening your understanding.  I am convinced of this Truth.

Technically, silver’s future could look like this:

As a disclosure, I invest in silver and related stocks.

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There has been some focus placed on July 20th as a possible economic/monetary event that might affect us all.  These days, anything could happen.  The complexities that have been created by man have increased to the point where any aspect of the current system could fail, or caused to fail by some nefarious plan implemented in order to bring us into further subjection.  It is my hope that this chatter is simply another mind-generated suspicion without any substance.  However, I would rather be prepared for such an event than be a day late with regret.

The American economy continues to weaken.  Our latest trek to the Alabama coast confirms that belief.  We have been going down South for the past 38 years and have a good feel for the economy based on the crowds or lack thereof.  Restaurants are no longer packed, traffic was not as heavy, and the beach was not overcrowded except for July 3rd and 4th.  People are cutting back in all areas.  Food prices are going through the roof and gasoline prices were in the mid to high $3 range.  We’re growing accustomed to the new price levels.

In the past, the solution to America’s economic woes focused on war.  People are weary about another war at this time.  A false flag event could take place in order to sway the population into yet another major conflict.

Since the 2008 meltdown, the banking system has not improved at all.  On the contrary, it is more fragile today than ever and the big banks have increased in size and concentration.  Their political funding has once again paid off in spades.  At the same time, the middle class is shrinking.  This group was the economic engine to keep the economy growing.  Consumption continues to decline and the true statistics reveal this reality.  This is why one must be aware of the possibility of an act of desperation by those in control.

In such a complex world, what can you and I do?  My long-term solution comes from Above, not here at the worldly level.  In Scripture there were 13 recorded famines.  Mankind brought on these famines.  Our Heavenly Father had the solutions to the famines then as HE does now.  HE knows that a Remnant will intercede for mankind and HE will sustain that Remnant while the rest of the world goes through whatever judgment necessary to once again balance the scales.  Jesus’ ministry occurred during the occupation by Rome yet He had no problem in rallying resources as needed to minister to the hungry.  Should we expect anything less now?

The noise of the current system can be deafening if you let it.  Each of us should enter into our “closet” and focus on hearing Our Father’s Voice.  HE will guide us through whatever lies ahead.  If something major does happen on the 20th, those who rely on Our Father will be the examples for others to see and emulate.  We will be the calm ones in the midst of the storm.

For those who own physical silver and/or silver stocks, the following article makes some notable points about what is going on in the metals markets:

http://blog.milesfranklin.com/its-a-trap

The U.S. continues to alienate the rest of the world with its arrogance.  The bully can only intimidate the rest of the neighborhood for so long before everyone else has finally had enough.  The manipulators of the metal have played on the emotions of the investors, believing they could minimize the demand for silver as well as gold.  Those who believe history must be considered as a strong indicator of the ultimate direction of these metals have taken these times to add to their positions.  Patience rewards those who are not swayed by the tactics of the manipulators.

Inflation in food prices has definitely shown up in our local economy.  Prices are up by at least 10% this year.  Has your paycheck or social security check increased by this amount?  Probably not.  The middle class is shrinking rapidly in the U.S. This is where economic growth has come from in the past.  As baby boomers respond to higher prices, you can be assured that they will begin to cut out any extravagance of the past.  It may take a few quarters to show up in the GDP, but expect to see retail spending weaken.

$45,000 for a new Ford pickup?  You’ve got to be kidding.  $9 for a “pick two” at the local Panera Bread?  Outrageous.  $4+ for a gallon of milk?  I am sounding like my parents now.  Our paper money continues to depreciate in value.  Physical assets are the only true stores of value in the end.  Some of them are even suspect.

Russia’s accumulation of gold:

China has a similar graph.  They see the change coming.  The bully will be overcome and the rest of the neighborhood will go about its business.

One of the more subtle aspects of the ego is how it promotes scarcity.  Your ego would have you chained to the current system under the Economic Law of Scarcity.  Scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.  Man created this definition.  However the definition is restricted to the lower state of existence at the pure physical level without regard to the unlimited resources available to those with greater revelation and understanding.  When people are scarcity-oriented, they will have pressure to walk in a lawless manner.  The current system in oppressive by nature and thus the government creates a notable infrastructure to force compliant behavior in the area of revenue collecting.  It was the same environment during the time Jesus walked the earth.  The following passage is mentioned in Mark and Luke as well (Mark 12:13–17; Luke 20:20–26 ):

Matthew 22:

15 Then the Pharisees went and plotted how they might entangle Him in His talk.16 And they sent to Him their disciples with the Herodians, saying, “Teacher, we know that You are true, and teach the way of God in truth; nor do You care about anyone, for You do not regard the person of men. 17 Tell us, therefore, what do You think? Is it lawful to pay taxes to Caesar, or not?”

18 But Jesus perceived their wickedness, and said, “Why do you test Me, you hypocrites? 19 Show Me the tax money.”

So they brought Him a denarius.

20 And He said to them, “Whose image and inscription is this?”

21 They said to Him, “Caesar’s.”  And He said to them, “Render therefore to Caesar the things that are Caesar’s, and to God the things that are God’s.” 22 When they had heard these words, they marveled, and left Him and went their way.

Jesus is THE Pattern Son and we should take His example as the basis of our behavior.  Inherent in this event is the fact that Jesus said “Pay the tax”.  The Pharisees were subjected to Rome’s authority and were hoping for a conquering Messiah to take control and establish Israel as the authority.  They viewed Rome as lawless to their way of life and rationalized why they shouldn’t be subjected to Rome’s taxation.  Yet they walked the roads that Rome built and used other of Rome’s resources.

Today, people want to use all of the resources created by their current governments but do not want to fund the creation and maintenance of the infrastructure.  They use the argument that much of the funds are misused, etc., etc. etc.  Stop!  Render to Caesar the things that are Caesar’s.  Pay your taxes and establish yourself above reproach.  In the current system, the gun, the badge, and the prison are the law.  Pay your taxes and sleep peaceful at night, I do.

The error in their lawless approach to evading taxes is that they don’t understand that Our Heavenly Father is greater than the current system.  He has economic solutions that surpass man’s understanding.  You are just one revelation away from having your needs met.  The problem is that you don’t seek Our Heavenly Father’s voice in the area of scarcity.  Instead, you spend much of your time trying to work the current system which is designed to keep you enslaved.  Our Heavenly Father is in the business of setting the captives free.

The Economic Law of Scarcity mentioned above assumes men have unlimited wants.  Not so.  As I spend more time with Our Heavenly Father, my “wants” decline.  Life is about building relationships and ministering to the needs of others.  Love wants to restore and reconcile.  Self-centeredness desires to divide and be condescending toward others in order to exalt itself.  The ego is the source of unlimited “wants”.  As you move toward being led by The Spirit, your needs and wants will decline.  You will desire to simplify your life.

Jesus rallied the resources of Heaven to pay His taxes:

Matthew 17:

24 When they had come to Capernaum, those who received the temple tax came to Peter and said, “Does your Teacher not pay the temple tax?”

25 He said, “Yes.” And when he had come into the house, Jesus anticipated him, saying, “What do you think, Simon? From whom do the kings of the earth take customs or taxes, from their sons or from strangers?”

26 Peter said to Him, “From strangers.” Jesus said to him, “Then the sons are free. 27 Nevertheless, lest we offend them, go to the sea, cast in a hook, and take the fish that comes up first. And when you have opened its mouth, you will find a piece of money; take that and give it to them for Me and you.”

The fish responded to the words of Jesus.  Peter responded to the words of Jesus.  Are we not also “aliens” in this land?  Let us not offend the tax collectors.  Let us move into the Kingdom of unlimited resources where every need is met, not to supply our old man, but to minister Love and life to all mankind.  The riches in Heaven are reserved and only accessible by those with the revelation of Love.  That is where the real treasury is at.  It will be protected from those with lawless intent.

This is the number to have been recently printed and put in the markets by the central banks.  If ISIS rebels decide to blow up Saudi Arabia’s oil pipelines, a rather easy task I have read, the price of oil could skyrocket above $200 per barrel.  How does $7-$9 gasoline in the U.S. impact the economy?  Catastrophic.  This could be the black swan event no one planned for that could cause a global economic collapse.  Stay nimble.  Keep the tanks and the food pantry full.

After Fed Chairman Yellen’s comments, someone place a half a billion into gold futures:

You don’t put this kind of cash at risk unless you know something.

Here is today’s Gold chart:

Their investment is in the black already.  Hmmm!