Servias Ministries Blog

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”.

WASHINGTON — Sen. Elizabeth Warren (D-Mass.) warned in a speech Tuesday that the problem of banks considered "too big to fail" has only gotten worse since the 2008 financial crisis, potentially sowing the seeds of a future crisis.

"Today, the four biggest banks are 30 percent larger than they were five years ago. And the five largest banks now hold more than half of the total banking assets in the country," Warren said in a keynote address at a conference on the future of financial reform put on by the Roosevelt Institute, a think tank. "Who would have thought five years ago, after we witnessed firsthand the dangers of an overly concentrated financial system, that the ‘too big to fail’ problem would only have gotten worse?"

See: http://www.huffingtonpost.com/2013/11/12/elizabeth-warren-too-big-to-fail_n_4260871.html?ir=Chicago

Unrighteousness grows worse everyday.  At some point, a banking crisis will again surface, but only bigger.  Man has no real solutions but to do the same thing over and over, expecting different results.

Besides the Federal Unfunded Liabilities, the individual states have their own challenges.  Let’s not forget the city unfunded liabilities as well.  How much more debt can the future generation absorb?  Who is going to be responsible for all the mounting debt in an economy that is not responding to the Fed’s $85 Billion per month stimulus?

State Budget Solutions 50 State Pension Table, Moody’s Plan List (all figures except Per Capita in thousands)

Note: this spreadsheet included pension plans listed in Moody’s Investors Service’s "Adjusted Pension Liability Medians for U.S. States," published June 27, 2013

See: http://www.statebudgetsolutions.org/publications/detail/promises-made-promises-broken-the-betrayal-of-pensioners-and-taxpayers#ixzz2jb9RWznD

The staggering debt levels in the U.S. economy can only be resolved by two options: Default or Hyperinflation.  Either way, I believe those who have positioned themselves with physical assets will weather the coming economic storm.  Both options will create economic pain.  I tend toward the hyperinflation option, based on the current and past attitudes of those in power.  Hyperinflation allows you to “legally” pay your debts off.  Those in power like to hide behind existing laws and use the law as their justification for their actions.  They use the “letter” of the law rather than the “intent” of the law to further their own agendas.  This is the classic case of self-interest at an extreme.

When there is a disconnect between authority and responsibility, problems arise.  Those in authority have no resulting responsibility for their actions.  Why?  The populace is not in one accord thus there is no unanimous voice to say “No” to the irresponsible decisions of the few.  The two party system is designed to divide the people, each group looking at the weaknesses of the other group as its justification for existence.

The largest bank in the United States will stop making student loans in a few weeks. (See:http://www.cnbc.com/id/101012270)  JP Morgan Chase has notified schools that it is exiting the student loan market in a few weeks.  This should tell you that this bubble is getting ready to burst.  With over $1 Trillion in student loans, American households are teetering on default if interest rates rise.  This is why the Fed cannot and will not taper their $85 Billion per month of money printing.  This continued money printing will serve as a basis of a greater inflationary period to come.  At some point, gold and silver prices will sustain upward moves to new levels.  Remember when gold was $275 per ounce and silver was $5 to $6?

The recent lack of resolving the debt ceiling tells us that the politicians have no stomach for doing the right thing.   Some now believe we don’t even need a debt ceiling.  Too bad we as individuals can’t have an unlimited checkbook to feed our egos.  Where am I gonna park my yacht?

What is the solution to our problem?  Unity among the people.  How can that be attained?  By everyone getting the revelation of Love.  Until then, we are destined for pain.

Why does China need U.S. Dollars to buy oil from these trading partners?  Because the current system overseers say so.  I wonder if the Chinese would like to see a different economic system?  How about those listed trading partners?

It looks like there may be a change in the petrodollar’s future coming soon.

This week continues to confirm my past comments about the state of the economy.  The rosy U.S.  unemployment numbers came out this week: “204,000 jobs were added”.  However, John Williams of www.shadowstats.com comments:

“With Washington awash in scandals, political turmoil and sinking approval ratings, the political timing could not have been better for this morning’s (November 8th) stronger-than-expected jobs report from the Bureau of Labor Statistics (BLS).  An unusual shift of favorable seasonal-adjustment factors—into the August, September and October reporting period—boosted the latest jobs numbers.  The jobs growth borrowed from other periods will be buried in the next benchmark revision or will be re-shifted in the months ahead, with the details never to surface in official reporting.  Separately, the October payroll survey counted furloughed government employees as employed, as the BLS previously had indicated.”

Let’s face it, the Bureau of Labor Statistics “cooked the books” and it appears they really don’t care if guys like John Williams knows about it.  Watcha gonna do about it?

Why misrepresent the employment numbers?  The only reason you would do this is to try to convince the overall market that things are better than they really are.  You want to promote an illusion to keep people passive about the current state of the economy.  John has been keeping close eyes on the real unemployment numbers, currently at 23.5%.  What does this tell you?  Nothing that the Federal Reserve Bank is doing has positively impacted the average American.  To the contrary, their zero interest rate policy is taking money aware from the middle-class savers and putting it into the pockets of the bankers and top 1%.  They have successfully inflated the stock market.  How?  Where else can money managers go to earn any type of return on investment?  The Fed is forcing all investors to put money in a riskier environment.  The result is that the stock market is making new highs.  Once the chickens come home to roost, the market will possibly take an epic dive.  At that time, people will suffer major losses.  Bonds are in the same shape.  Once interest rates finally go back up, the bondholders will suffer huge losses.  If the other countries begin to trade among themselves without the use of U.S. Dollars but agree on another currency for settlement, the value of the U.S. Dollar will plummet and prices will skyrocket.  Inflation will increase dramatically.

Stock losses, bond losses, dollar losses, and high inflation.  That is a pretty bleak picture.  Where would one go to try to offset major losses in these areas?  Physical assets.  Gold, silver, oil, natural gas, farmland.  You can see why there is such attention paid to the price of gold by the Federal Reserve’s agent banks trying to manipulate the price of gold downward.  It is the one global indicator of the health of the U.S. Dollar.  When it goes up dramatically, it signals big losses in the value of the Dollar.  Holders of the Dollar are then alerted that it is time to dump their Dollar holdings and move to a safer medium of value.  The Chinese are well aware of this issue.  This is why they continue to aggressively acquire gold before the bottom falls out below the Dollar.

The following chart provides us perspective:

If the Chinese fully trusted the future of the U.S. Dollar, they would not be in such a hurry to increase the gold reserves.  Actions speak louder than words!

The following article provides some ugly detail of how arrogant and entitled the banks have believed themselves to be:

http://m.rollingstone.com/politics/blogs/taibblog/chase-isnt-the-only-bank-in-trouble-20131105

The lawlessness is so widespread, the only real fix is to reset the entire economic system.  Let me see, who do you know that is big enough to do that?  Yep, Our Heavenly Father!