Servias Ministries Blog

They look for nails to beat down.  President Obama made a very public statement this week- He suggested that the financial markets should be concerned about the shutdown/debt-ceiling crisis.  This is a standard tactic of manipulation.  He wants to place the responsibility of losses in the stock market due to the government shutdown squarely on the shoulders of the opposition.  We are apolitical in our views because we believe that the Kingdom of GOD should be the final governmental authority.  Our Heavenly Father will install HIS manifested authority in due time.  In the meantime, I believe we are in a “bridge” or transition period that will surely be surrounded by volatility and chaos.  As John Williams puts it in his latest newsletter at www.shadowstats.com :

“Instead of trying to promote orderly and stable markets, the Administration appears to have been playing an extraordinarily dangerous game, in recent days, trying to talk down the stock market, while counterbalancing some financial-market moves with intervention activity through the efforts of the President’s Working Group on the Markets (a.k.a. the “Plunge Protection Team”). “

It appears that the President has his hammer out, looking for nails in a field of landmines.

There is every reason to believe that we are outside the range of prior experience.  The current environment has never been experienced in human history, so we do not have a prior experience to refer for understanding.  The only reference we have is known as “Divine Intent”.  Dr. Vincent Speckhart thoroughly covers this topic  in his book: “Quantum and Non-Quantum States of The Lord Jesus Christ”, available at www.unity153.net

David Stockman, former Director of the Office of Management and Budget, compares this crisis to the one he dealt with in 1981 under President Reagan.  He states:

“It’s going to be catastrophic.  The market has bid up financial assets of all types, and if confidence is ever broken due to an unexpected event, a black swan, or a Lehman event, I think there will be massive selling.  There won’t be any bids, and the Fed will be hard-pressed to make a new rescue regime like it did in September of 2008.  After all, interest rates are already at zero, it can’t radically drop them like it did back then. “

Four years ago, the Federal Reserve was talking about “exit” strategies for the Quantitative Easing program.  Four years later, there is no exit in sight.  Further, they have pushed rates to zero without success.  What else is left?  More money printing?  It appears that extreme money printing is ahead.  Gold and silver will benefit if that happens.

Short term possible outcomes:  After much wrangling, kicking dirt, spitting, and name calling, there will be some compromise.  The stock market will soar to 16,000.  Suddenly, the market will figure out that the Affordable Healthcare Act will cause the middle class to quit spending money on consumption, simply to pay for the additional costs of premiums.  Why?  Based on my current understanding, your healthcare premium will be affected by your BMI.  Body mass index (BMI) is a measure of body fat based on height and weight that applies to adult men and women.  If you are placed in the “obese” category, you will pay more, even though you are healthy.  How many baby boomers will be classified as overweight?  Most of them.  You will be required to pay for your past eating habits, your genetics, and your exposure to environmental toxins.  Environmental toxins?  Yep, where do you think your body stores toxins you have been exposed to?  In your fat.  It is part of the mechanism to protect your heart.  Do you women have a hormone issue that has caused you to gain weight?  It affects your BMI… and your pocketbook soon.

The Affordable Healthcare Act may be the Black Swan in white swan clothing we have been expecting.  The unintended consequences of their actions may come home to roost.  If that happens, economic chaos will cause everyone to lose some weight.  I guess they will then claim success.  The average American’s BMI will be in the normal range.  To calculate your BMI, go to: http://www.nhlbi.nih.gov/guidelines/obesity/BMI/bmicalc.htm

Pull out your running shoes, back away from the table, and fall in love with gluten-free, sugar-free foods.  Time is short!  And Ladies, get those hormones under control.  It may soon be federally mandated.  Men, beer is not a vegetable… sorry to pop your bubble.

The bubbles and imbalances are everywhere:

Consider the parallels and ramifications.

… I guess it is multimedia day.

In John Williams’ latest newsletter (www.shadowstats.com), he states, “Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.”  I agree.  On the 1st day of the government shutdown, the President’s Working Group on Financial Markets kept the selling of stocks, the selling of the U.S. dollar, and buying of gold from occurring.  It was clear when you looked at the drop in the price of gold yesterday.  It should have been moving up on the uncertainty.  Ultimately, market fundamentals will prevail. 

For those in pension funds, you might want to gain perspective from the research of Matt Taibbi.  He exposes Wall Street’s latest source of unscrupulous activities. 

It just keeps getting uglier out there and the truth is harder to discern for the average person.  This is emphasizes the fact that our only source of Truth is Our Heavenly Father.

Last night the U.S. Government shut down… sort of.  This charade of the two party system is designed to move power from one party to another.  Since the Fed can print unlimited money, only the legal wrangling remains before the spigot opens again.  Once this happens, the stock market might experience “euphoria” and push the Dow to 16,000.  If this happens, I see it as the world’s attempt at love and it will then miserably fail.

Richard Russell, known as the Godfather of newsletter writers, sees the potential of a “megaphone formation” or the “broadening formation.”

He said, “This final wave of optimism is the market’s kiss of death, since this final rising wave takes stocks far above known values”.  He looks for the Dow to collapse to 5,000.  Incidentally, ”5” if the number of Grace.

In his interview: Question — How do you think we should prepare for these massive changes that you foresee?

Response:  I’m not really sure, but my first response is that we must abolish greed and become spiritual.  Currently, it seems to me that the emphasis is on profit, growth at any price, power, greed and wealth.”

He expects a drop like this would evoke a new monetary system.

I think Richard is on to something big!

(As a courtesy: He writes the Dow Theory Letter: https://ww2.dowtheoryletters.com/ServicesOnline.nsf/Subscription+Form?OpenForm)

Economic disorder is ahead. The Fed is learning by doing and they are screwing it up. Who will pay the price? You and I have been paying for five years but we will keep paying. Rhode Island has changed its pension laws to reduce value and costs. Who cares what was promised years ago. Tough luck. Prepare for other pension funds to be compromised as well. You must protect yourself. If your pension fund is located in a public entity without a balanced budget, you will be among the first targets. Others will have more notice as disorder increases. Take the opportunity to minimize your exposure, if possible. Convertible hard assets are the best protection against those who will exploit you.

Usurp: to take and keep (something, such as power) in a forceful or violent way and especially without the right to do so.  Do U.S. government officials have the right to manipulate markets to perpetuate a lie?  This is exactly what is going on in today’s markets.  It is well known among lawmakers that bills passed in Congress, Parliament, or whatever the government entity, contain subtle statutes which enable officials to carry out their own agenda.  The current environment in the gold and silver markets is the most obvious example.

Fiat currencies are a lie, they represent an illusion of wealth.  The moment you give a small group of men and women the power over wealth, they will ultimately make decisions based on greed… unless they are directed by Our Heavenly Father.  The U.S. Dollar has lost 98% of its value since the 1920’s.  Fiat currency systems have a history of collapse.  There has never been a fiat currency to survive hundreds of years.  On the other hand, gold and silver have managed to survive as currency over thousands of years.  Why do governments steer away from gold and silver?  They can’t manipulate its value.

Is a lower law that contradicts a higher law legally enforceable?  The highest law is the law of Love, the two Commandments explained by Jesus Christ.  Once men separate from the “spirit” of those two laws, they become usurpers of law.  Thinking that you can pass a statute to “legally” manipulate a market at the expense of the populace is a short-sided view.  There will come a day of reckoning and it will not be pretty.  Men and women will wonder “How could GOD allow this to happen?”.  HE will simply refer to the Law of Equal Weights and Measures, then pronounce HIS judgment.

By the way, HIS name is not GOD, it is LORD GOD ALMIGHTY:

​“Holy, holy, holy,

​​Lord God Almighty,

​​Who was and is and is to come!”

or, if you know HIM, it is FATHER.

In last week’s blog, I listed many of the economic issues plaguing the U.S.  It was evident then that the Federal Reserve would continue its stimulus of Quantitative Easing at the rate of $85 Billion per month and they would not taper their purchases of government securities.  What does this tell you?  All of the rosy projections by the media were hogwash.  The truth continues to elude the public.

The market continues to be rigged, allowing the Kings of the East to replace their Dollars with gold.  This is the precursor to a new monetary system.  When will it take place?  Only Our Heavenly Father knows for sure.  How will it be structured?  It will surely be backed by “truth in the transaction”.  Gold and silver will accommodate that requirement.  In the past, the government called their manipulations of the market- interventions.  A continual intervention is manipulation.  There will come a climax of intervention and all the currencies will revalue against gold and silver.  I believe those who have been able to acquire physical assets without liability will experience a jubilee of sorts.

The Federal Reserve is not all-powerful because the U.S. Dollar is not all-powerful.  That is its main weapon.  For decades, its power originated from the gold that was backing it.  In 1971, the power transferred to the U.S. Military.  Two or three wars later, the power is waning.  Other countries are increasing in their overall power, revealing the structural weakness of U.S. policy and the Fed.

Former US Treasury Official, Dr. Paul Craig Roberts has been warning of an economic collapse.  “Here’s the situation for the Fed:  All of the markets, and the solvency of the big banks, are totally dependent on the Fed buying the bonds.  If they don’t buy the bonds, then the interest rates are going to rise, the prices of all debt-related instruments are going to go down, the insolvency of the banks again reappears, the bond market collapses, and the stock market collapses….”.

The US cannot pay off its debts, it simply prints more bonds and the Fed buys them with newly created money.  The official US Government debt is at $17 trillion.  Additionally, unfunded liabilities such as Social Security and Medicare place the total debt closer to $100 trillion and higher.  The Fed knows this, the central planners know this, you and I know this.  How can we protect ourselves?  Like a broken record, we must simplify, reduce/eliminate debt, and buy hard assets that retain value.  I believe Our Heavenly Father is giving us ample warning of the ugliness to come.  The volatility of prices will test your emotions.  Apparent losses in value of hard assets will test your belief in the overall picture.  A drop in the price of gold or silver can be viewed two different ways:  as a loss, or as an opportunity to buy.  I see it as the latter.

A day of reckoning will arrive for the current system.  Denying this reality will only lead to greater pain and sorrow.  We must deal with the truth and lack of fruit of the current direction.  Finland is now wanting its gold back: “Finland recently became the latest nation to initiate action to pull its physical gold reserves back within its national borders.”  I guess I’m not the only one who sees chaos down the road.  If you don’t have possession of your gold when the chaos hits, you probably will not get it back… ever!  Finland knows this, China, Venezuela, and Germany know this, and the rest of the countries will soon admit this.  They are all beginning to prepare.  As Our Heavenly Father told Joshua, “Be of good courage!”

In my blog yesterday, I summarized all the challenges at hand.  The U.S. economy is not in good shape.  Is it surprising to anyone that the Federal Reserve has decided to continue Quantitative Easing (aka money printing)?

Is Housing in recovery as they would have you believe?

How is Household Income looking?

What about families receiving food stamps?

23,116,928 to 20,618,000: Households on Food Stamps Now Outnumber All Households in Northeast U.S.

See: http://www.cnsnews.com/news/article/terence-p-jeffrey/23116928-20618000-households-food-stamps-now-outnumber-all-households

I present this information to provide you with perspective about the lack of truth being disseminated in the Media.  There is so much deception out there, it can be a challenge to see what is actually the state of the U.S. economy which also affects the rest of the global economy.  You can appreciate why the Kings of the East are working rapidly to disconnect from the U.S. Dollar.  Their dollar holding are declining in purchasing power rapidly and they don’t want to be left holding the bag.

We are in no better shape than the time just prior to the 2008 Financial Meltdown event, probably worse.  What does that mean to the average person?  It means that you could end up somehow losing what little wealth you have when the next crisis demands payment by “somebody”.  It could be a “bail-in” of banks that takes a portion of your money and converts it to worthless bank stock.  It could be the government forcing you to hold government bonds in your retirement account.  The list goes on.  When things start getting bad, politicians like to start a war.  This time, it did not work in Syria.  I hope that nobody comes up with an event that would draw us into war again.

What are we to do?  We must seek Wisdom from Above.  We must gain understanding.  We must be rooted and grounded in Love so that we don’t respond in fear.  In tough times, people look to those who are connected with Our Heavenly Father.  Other times, they hardly give you the time of day.  That’s okay.  Love does not demand attention.  Be sensitive to what your hear from Our Heavenly Father.  It is HE who will deliver you from famine and chaos, not your elected official.

There are so many economic issues out there, one must summarize them to keep perspective:

Massive accumulation of debt at the Federal level

An ever- expanding Fed balance sheet with no realistic exit plan- Tapering Bond purchases could send the economy into a deeper contraction

The Real Estate sector has not recovered

No resolution to unfunded liabilities/entitlement programs- they are thought to be untouchable and they are growing

Record disability & food stamp recipients- the numbers are huge and growing

Record low labor force participation rate-  the Affordable Care Act (Obamacare) has caused employers to cease hiring full-time employees and discouraged workers are removed from the unemployment numbers to paint a better picture

Stressed states/municipalities- expect more bankruptcies and curtailment of services, increase in fees

Five-fold increase in federal student loan debt- if you can’t get a job, go back to school.  The costs have skyrocketed

A surge in margin debt- Investors are leveraging up in an attempt to generate income, the risky way.

Foreigners selling our debt at a steady pace-  Foreigners have become net sellers of U.S. debt.  They don’t trust us

Backwardation in the gold market- People don’t want to wait for their physical gold, they don’t trust the future ability to deliver gold

Increasing homeless population- Los Angeles has over 50,000 homeless.  Other cities are seeing increases as well

Inflation is running higher than reported.  Simply go out to eat and see what you are paying for the privilege.  Do you remember when $3.50 gasoline was on the news?

The “morality” index is pushing to an all time low.  The family structure is being redefined by Hollywood.  The theme is total dysfunction.  Sex, crime, lies, and deception are all themes that are now promoted to the populace.  One of Denver’s biggest economic boosts is the marijuana industry.  Drug stores are now on every corner.  If they didn’t see the pharmaceutical business increasing, they would not spend the money in expansion.  Fast food and many grocery items contain so many chemicals that our bodies are now overloaded with toxins.  People living in farming communities are being exposed to pesticides that are now promoting cancer and other diseases at an alarming rate.  It’s like the use of chemical weapons at a slow rate of exposure.

Our Heavenly Father designed a process for living life in a blessed manner: First get wisdom, then understanding, then knowledge, then skill.  The above list is long and undistinguished because people skipped wisdom and understanding.  They simply viewed knowledge and skill as the key to success.  Without wisdom and understanding, you will create an environment destined to fail.  Wisdom comes from Above.  Understanding follows.  There will be a great “reset” because these current systems in place will crumble soon.  Our redemption draweth nigh!

On Tuesday, July 16th, I stated in the blog that I expected another smackdown of gold & silver.  It has arrived.  With all the talk of tapering, the Federal Reserve needed to project the illusion (via gold price) that all is well.  Has anything improved?  Not at all, it has only gotten worse.

True U.S. unemployment remains at 23% according to www.shadowstats.com

Poland wiped out 50% of the value of pension funds by “nationalizing” them.

It is now being reported that Larry Summers will be Obama’s pick to replace Bernanke.  Summers was one of the architects who facilitated the current “casino” environment.  His net worth now looks mighty nice, by the way.

Oil price remains stubbornly high.  Inflation is showing up everywhere among the average consumers. $2.19 for IHOP coffee?  Remember when $3.55 per gallon of gasoline was major news?

China and India are huge buyers of gold, causing short supply.

FDIC announced foreign branch deposits of American banks are not insured. ($25 Billion fund covering $19.2 Trillion in deposits… Oh well!)

Healthcare cost are going to skyrocket… even more (unless you are a member of Congress).

Average European business activity is down 10-50%: “Greek unemployment rises to record 27.9 percent in June”

State, county, and local governments are being fiscally challenged to stay afloat with the burden of pensions.

U.S. Housing activity has not recovered: “U.S. Mortgage Applications Down 13.5% in Latest Week – MBA”

The Federal Reserve recently purchased 103% of Treasury Bonds during a month.  Others are unloading their positions.

Treasury Bond rates are going up causing losses to existing bondholders.

It is tough to make everyone believe that “all is well”.  The Kings of the East are taking the Western central planners to task.  The house of cards cannot sustain the illusion much longer.  Only Our Heavenly Father knows the day of reckoning.  Continue to focus on your relationship with HIM.  HE is the only one who knows how to navigate us through the coming economic minefield.  Fear not, there is a sure path to the other side.  In the meantime, both gold & silver prices are supporting further accumulation by those who believe they are a true store of wealth.