Servias Ministries Blog

The U.S. Government is on the hook for over $200 Trillion.  We either need 57% more tax receipts or 37% less expenditures going forward to have any chance of surviving this black hole of current and future committed liabilities.  The politicians have mortgaged our future, our children’s future, and our grandchildren’s future.  The country’s fiscal situation is worse than Detroit many times over.

The Federal Reserve is printing 29 cents of every dollar the government is spending.  Not good.

1,000 economists including 15 Nobel Prize winners want the public to know how dire the circumstances are.  They are supporting a Congressional Bill to expose this liability.  It is called “The Inform Act”.  See: www.theinformact.org

The Chinese Yuan has now surpassed the Euro as a trade currency, and the U.S. Dollar is in its sights.  China is methodically implementing its long-term strategy to replace the U.S. Dollar.  It is no longer buying U.S. Treasuries.  The current ratio of Dollar to Yuan trade transactions is 10 to 1.  The global oil sales in Dollars keeps the demand for USD so high.  Once Saudi Arabia firmly decides to accept other currencies, the ratio will move rapidly.

“The escalation of military tensions between Washington and Beijing in the East China Sea is superficially over China’s unilateral declaration of an air defense zone. But the real reason for Washington’s ire is the recent Chinese announcement that it is planning to reduce its holdings of the US dollar.”   See: http://www.presstv.ir/detail/2013/12/01/337686/china-plan-to-quit-dollar-infuriates-us/

Central Planners like to use military intimidation to keep countries in line.  What war has the U.S. truly won since WWII?  Trillions of dollars have been spent and the world is not safer, more peaceful, and the U.S. is less popular than ever before.  Americans have exported their debt overseas and have allowed the major banks to effectively bet the future generations’ money in the derivative market.  Former and “future” bankers have been placed in strategic political positions to promote their agenda of greed.  Meanwhile, many Americans look forward to the next episode of “Duck Dynasty” or “Storage Wars” on cable TV.

Gold, silver, and related stocks have been beat up in recent weeks and months, simply providing additional buying opportunities for those who believe that the illusion of fiat currency cannot last forever.  Based on world history, it is not a question of “IF’, but “When”.  As usual, men will not know the day or the hour that the Black Swan event arrives, but it will.

The Bubbles in the financial arena continue.  The 3% decline in sales on Black Monday are an indicator that can’t be easily manipulated by the government… yet.  This suggests that the economy is moving quickly into the second dip of the recession I spoke about in past blogs.  Based on raw government numbers, we never really experienced a true recovery, only an orchestrated one by the use of massaged statistics.  Government assistance of the unemployed continues to run at record levels.  The Federal Reserve has vastly expanded its balance sheet but failed to positively impact the economy.  Since the spring of 2010, our national debt has increased 46%, from $8.4 trillion to $12.3 trillion today.  Also, the inflationary increase in the money supply, which is based on the Fed’s balance sheet, has increased from $2.3 trillion to $3.9 trillion today, a 70% increase.  Let’s face it, their monetary policy isn’t working, and there is a lot of debt to be paid back.  Someone is going to be on the losing end of this huge problem.  China knows it, the U.S. knows it.  Ultimately, the bully goes home with a black eye.

The following chart represents the spread between the Brent (World) Crude Oil price and the West Texas Intermediate (Domestic U.S.) price:

Matt Simmons, the investment banker who specialized in the energy sector, explained that the WTI oil was a higher quality product versus the Brent crude oil supplies,  yet the WTI price has been lower since 2010.  Why?  Price manipulation to prop up the U.S. economy.  Don’t get me wrong, I like paying less at the pump for my gasoline.  However, any price manipulation has a long term negative effect on conservation of existing supply.  By suppressing prices, you expose the consumer to much higher prices in the future.

The price of a product impacts the consumer of the product.  Since oil is truly a global commodity, manipulation of price can and will cause shifts in the well being of all mankind.  The only question is “When?”.

Another example of economic manipulation is the current Quantitative Easing by the Federal Reserve.  A similar philosophy of loose money was adopted in “Roaring 20’s” by the Fed.  The following chart compares the two periods:

The third graph depicts the “tinkering” with the definition of Consumer Price Index (CPI).  This index determines how much Social Security recipients receive in cost of living raises:

Over the last 30 years, the average person is making less money in real terms.  Now you know why that coffee costs $2 at IHOP and we are told inflation is in check.

These disparities simply represent the perpetuating illusions that those in power use to manipulate the populace and keep them at bay.  This will not continue forever.  There will be a Great Reset and you need not be caught unaware.  As we discussed in yesterday’s online Bible study, you will need wisdom and understanding to guide you through the coming economic challenges.  In order to embrace wisdom and understanding, you must change, you must make decisions to protect your heart and not entertain sin and lawlessness.  Obviously from the above graphs, lawlessness abounds.  However, Love trumps lawlessness and will prevail.  These blogs are all about individual preparation for what is coming down the pike.  Don’t be caught unprepared by any perceived delays.  Use this time for personal growth and maturity in your walk.

China continues its march to U.S. Dollar independence:

It is in anticipation of the Great Leveling, then the Great Reset of all currencies.

The unemployment numbers continue to be fabricated in order to prop up the financial markets.  Why?  If investors were to switch from greed to fear, the stock market would take a dive.  At this time, it represents discretionary wealth more so than any other investing arena.  Bonds continue to represent a mine field once interest rates begin to rise.  The housing market is consumer-driven and the consumers are still unwilling or unable to part with their cash.  Only the large funds, backed by Fed lending, are keeping the equity market up and surpassing new highs.

If you were to consider the “employed” labor force rather than focusing on the unemployment numbers, you would find that true mainline unemployment based on these numbers would be 11%.  When you add in discouraged and long-term unemployed, you arrive at John Williams’ 23.5% number.  John’s charting of the real Gross Domestic Product (GDP):

Does that look like a healthy economy to you?  How much lipstick can the pig handle?  No wonder the unemployment numbers continue to reflect the underlying weakness on a month to month basis.  The consumer isn’t spending:

(For a subscription to shadowstats.com, go to: http://www.shadowstats.com/subscriptions )

59% of America’s working population are working.  Before the last recession, it was 63%.  It has never recovered yet the mainline unemployment reporting would have you believe it has recovered.  It is the first time this situation has occurred since WWII.

In 2000, the number of people on food stamps was 17 million.  When Obama was elected, it was 32 million.  Now, it stands at at 47 million.

In the last five years, the top six (too big to fail) banks have increased 37% in size compared to 2008.  At the same time, 1,400 smaller banks have disappeared from the system.  Do you think the exposure of a collapse has decreased?  Concentration of financial exposure has only increased.  Their “casino” operations have become more reckless, not less.  Four of them have derivatives exposure of over $40 Trillion.  If (actually when) a Black Swan event occurs, they will collapse and depositor money will evaporate. 

40 years’ ago, the total debt was about $2 Trillion.  Today, total debt stands at over $56 Trillion in the U.S.  This has promoted an illusion of prosperity while 76% of all Americans live paycheck to paycheck.  The middle class is shrinking in a rapid fashion and we will soon look like a third world country.

Prepare, become more self-sufficient, and insulate yourself from any economic calamity.  Moreover, focus on listening to the Words of Our Heavenly Father!

Mea culpa is a Latin phrase that translates into English as "through my fault". It is repeated three times in the prayer of confession at the Catholic Mass: mea culpa, mea culpa, mea maxima culpa — "through my fault, through my fault, through my most grievous fault". 

JPMorgan agrees $13 billion settlement with U.S. over bad mortgages

NEW YORK/WASHINGTON (Reuters) – In late September, JPMorgan Chief Executive Jamie Dimon walked into the office of U.S. Attorney General Eric Holder.

"We’re willing to take our lumps," he said, according to a person briefed on the matter.

"We don’t think there were serious mistakes made," he added, in a meeting he had requested with Holder.

Jamie Dimon has no problem in making huge sums of money and giving up only a portion to pay the U.S. Government as a “settlement” of misdeeds.  It is just another line item of expense on JP Morgan’s financial statements.  In the meantime, he has been given and retained his performance bonuses while millions of homeowners have suffered a gross injustice.  His Board and major investors are all culpable for this lawlessness.  This article is timely as it is a witness to my earlier post about the Truth.  The homeowners settle for a pittance while Dimon boasts about his savvy business practices.  No jail time for the bankers!  Anyway, not yet.

See: http://finance.yahoo.com/news/jpmorgan-says-mea-culpa-13-002829603.html

The Federal Reserve has become a bubble machine.  “Misalignment of prices” is the new term used by Janet Yellen, the next Fed Chairman.  Since the year 2000, The Fed’s balance sheet has gone from a few hundred Billion to about $4 Trillion (Okay, $385 Trillion to be precise).  The stock market is now in “bubble” status and the only question is when will it burst.  When panic sets in, there will be epic losses in everyone’s portfolio.  The current interest rate of zero has forced money managers to deploy cash into the stock market.  The price-earnings ratio are becoming unrealistic for individual stocks.  There is a euphoria setting in that will bring the individual investors back into the market, similar to tech bubble in the late 1990’s, only larger.  It now appears the Dow will continue its rise for a short time.

What will be the “needle” to burst this bubble?  I have no idea.  How much higher can the Dow go?  Higher than I can determine.  When will it burst?  Only Our Heavenly Father knows.  This is the time to seek HIS wisdom, understanding, knowledge, and skill.  We are in the final stages of the calm before the storm.

The graph below tracks the S & P stock index with the Fed’s balance sheet growth:

Once the stock market took a dive in 2008, the Fed pumped money into the system and has continued propping up the market ever since.  They must keep monetizing the debt (printing more money to purchase Treasury securities).  They have no choice other than to let the market drop and inflict pain.  The delay of this pain will only serve to inflict a greater amount later.  The top 1% will buffer themselves from too much pain.  It is the 99% who will pay the price.  Once again, the innocent pay for the guilty.

The answer to global poverty is not immigrating the poor to more affluent countries such as the United States.  The answer is found in the revelation of Love.  Love sacrifices self for the benefit of others.  Currently, those born in an impoverished country and can implement change do not see any future in staying there.  Instead, they want to relocate to a country where they can realize their dream of success.  This exodus perpetuates the problem.  The solution to the problem lies with Our Heavenly Father, not man.  As we fully embrace the coming manifestation of the Baptism of Love, we will be given the solution to this global problem.  Clearly, the current system isn’t working.  The solution is found in the Heavenlies and will only be given to those who are found worthy to bring forth the solution without exploiting for personal gain.  Only the mature “Sons of GOD” will fit the bill.  It is imperative that we focus on completing this maturing process and set aside the worldly distractions.

My friend Wayne alerted my of this video which explains the problem:

There are many factors pointing to a global currency reset.  We have been in a currency crisis since September, 2008.  For the last five years, the Fed has attempted to resuscitate the world’s reserve currency.  The Saudis are now working to buy nukes to protect themselves.  In the past, the U.S. managed their protection but now the Saudis are publicly disenchanted with America.  Saudi Arabia is moving closer to the Chinese.  When the Saudis announce the departure of oil sales in U.S. Dollars, there will be a major move away from U.S. Bond holdings.  This will cause interest rates to go up on U.S. based borrowings.

In order to prevent this from crippling the American economy, the U.S. must enter into agreements with other countries.  A 50% devaluation in the U.S. currency may occur.  If this happens, the price of gold & silver would double.  As a result of a GCR, gold-backed settlement would be reinstated.  Countries fighting this devaluation may sustain banking system collapses.

The Chinese could write off much of their U.S. Bond holdings with the offset of the new valuation of their gold holdings.  They may be willing to take the hit. The Singapore Precious Metals Exchange has been established to challenge the London Metals Exchange.  Gold is moving to the East, so is the global monetary power.

Could the U.S. Dollar be split into “Domestic” and “International” denominations?  Everything is on the table.

Compression precedes expansion, and that is a good thing.  When you save money, that is a form of compression.  When you finally invest it in something worthwhile, that expands your impact to the world.  On the other hand, contraction is preceded by fear, uncertainty, and doubt.  There is no faith in acts of contraction.  In reporting the current system’s expected chaos, it is not done to evoke fear but to encourage “compression” once we get to the other side of the economic chaos.  There is much work to be done in the Kingdom and there is no sense in losing your funds to the current system’s black hole.  Those who are careful to protect their funds and survive any chaos that may come to steal, kill, and destroy finances, will be in a position to be a positive influence to those who trusted the current flawed system.  Your influence will expand in response to the “compression” you are currently enacting. 

Preparations for your calling are another form of compression.  As you invest time and focus in your relationship with Our Heavenly Father, you are setting yourself up for a notable expansion in your calling.  As you walk in faith in HIM and HIS plan, fear, uncertainty, and doubt are replaced with peace.  You then sow seeds of gratitude rather than bitterness.  You thank Our Heavenly Father for providing such an opportunity to grow during those times of trials and testing.  You are no longer moved by your circumstances.  You no longer orient yourself to “contraction”.