Servias Ministries Blog

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.

Poland has begun confiscating the wealth of its citizens by nationalizing retirement accounts.  This opens the door for the rest of the world’s governments to do the same.  Confiscation of wealth has been occurring throughout history.  Slave labor by Egypt was a confiscation of wealth of the Israelites.  At the end of the judgment period, the books were balanced.  Israel departed Egypt with much wealth.  This provided funds for the Census, then the building of the Tabernacle in the wilderness.  Exploitation of labor has been occurring in virtually every country.  Financial instruments have been designed to confiscate wealth.  The Federal Reserve was designed to confiscate wealth by depreciating the U.S. Dollar in a subtle, slow fashion.  However, the depreciation is beginning to accelerate.  Physical assets that don’t readily depreciate are a hedge or protection against devaluation.  Gold, silver, oil & gas reserves, and productive farmland are all stores of value to some degree.  Housing may or may not be, depending on the local market demand.  I generally view my home as a necessary expense.  It can only be classified as an investment when you sell it and collect the proceeds.  If you are able to buy a cheaper house and bank the difference, then it was an investment.  Otherwise, you transferred an expense to another location.

The western central planners have 3 primary price targets:

Keep gold under $1,400 per ounce

Keep silver under $24 per ounce

Keep the Dow Jones Industrial Average over 15,000

As the corresponding prices depart from these targets, we will be able to see the loss of Western influence around the globe.  These people have manage to maintain some level of control for decades.  Their ultimate goal is to wrestle money and power from all others.  They want all of mankind to serve them.  They think there are too many people thus they encourage and finance war.  This is evil at its worst.  We have been warned of these times in Scripture but are encouraged to remain steadfast.  Be encouraged that Our Heavenly Father will snare these people in their own devices and craftiness.  As the Kings of the East continue their quest to increase gold and silver reserves, there will come a day when the above indicators will suddenly move against the western planners.  Volatility will take over in the markets and men will become fearful of the future.  Fear will grip the hearts of men when the illusion of their wealth evaporates.  They will then look for answers elsewhere.  Our Heavenly Father continues to mature the Sons of GOD in preparation for that fateful day.

I have written much about the economic calamity that appears to be on the horizon.  Additionally, I have also written much on Love and faith.  Both will be required during the coming months and years.  Let no fear grip your heart.  Our Heavenly Father inspired this writing for the days ahead.

The Book of Job provides us hope for the coming season:

[Job 5:8-19 NKJV] 8 "But as for me, I would seek God, And to God I would commit my cause–

9 Who does great things, and unsearchable, Marvelous things without number.

10 He gives rain on the earth, And sends waters on the fields.

11 He sets on high those who are lowly, And those who mourn are lifted to safety.

12 He frustrates the devices of the crafty, So that their hands cannot carry out their plans.

13 He catches the wise in their own craftiness, And the counsel of the cunning comes quickly upon them.

14 They meet with darkness in the daytime, And grope at noontime as in the night.

15 But He saves the needy from the sword, From the mouth of the mighty, And from their hand.

16 So the poor have hope, And injustice shuts her mouth.

17 "Behold, happy [is] the man whom God corrects; Therefore do not despise the chastening of the Almighty.

18 For He bruises, but He binds up; He wounds, but His hands make whole.

19 He shall deliver you in six troubles, Yes, in seven no evil shall touch you.

Could the six troubles relate to the 6,000 year period?  Aren’t we at the beginning of the seventh?  Won’t HE shut the mouth of the injustice?  Won’t HE frustrate the “central planners” I have mentioned?

Behold!  I’m happy.  Selah.

Congress continues to contemplate a response to the chemical attacks in Syria even though the American population is overwhelmingly against any action.  The populace questions why those in power could stand by and let 100,000 die in civil war and focus on 1,000+ who died from chemical weaponry.  Everyone’s concern is about getting the facts and the truth of the matter.

Former Assistant Treasury Secretary Dr. Paul Craig Roberts says, “Let’s cut to the chase.  It’s got nothing to do with Syria.  The reason they are looking for a fabricated excuse to attack Assad is to continue the radicalization of Muslims in the hopes this spreads into the Muslim populations of Russia and China. . . . Washington intends to weaken the two giants it cannot run over.”

If he is correct, then the West is trying to weaken the Kings of the East using their religious population to weaken them from within.  The credibility of the Western governments is being challenged.  Would the strikes be “limited”?  Is the evidence conclusive and confirmed?  What is the truth?  The confidence of the U.S. Dollar is connected to this entire situation.  Petrodollars and energy are connected to this power struggle.

Are the Western central planners sending a message to the Kings of the East that WWIII is at hand?  Are chemical weapons any different than bullets?  Do you categorize “Agent Orange” used in Vietnam as a chemical weapon?  My brother-in-law still suffers from the exposure to this chemical agent.  My friend died from exposure to Agent Orange.  He was a medic on a helicopter in Vietnam.  What is the truth?  What is the motive?  Only Our Heavenly Father knows the hearts of men.  We must pursue the revelation of Love and access the Non-Quantum in order to effect real change in the current environment.  Otherwise, expect the war drums to get louder.

The first 10 minutes of the following video summarizes what I have written about over the last several months:

The problem still remains where a local bank “parks” its excess cash in this interconnected system.  Can it be insulated if its borrowers are banking outside the state?  Are its investments insulated from external losses?   If excess cash is converted to gold, then converted back to cash as needed, that option may be part of a solution.   It’s a brave new world out there.

For years, I wrote about the Peak Oil reality.  Matt Simmons wrote his book on the decline of global oil reserves and the fact that Saudi elephant fields were in decline.  These days, you don’t hear anything about the Saudis releasing surplus oil to lower the price.  Their greatest asset is in decline and they are trying desperately to hold on to their control of Middle East energy flow.

A petrodollar is a United States dollar earned by a country through the sale of its petroleum (oil) to another country.  This has been a foundational aspect of the U.S. Dollar as the world reserve currency.  All countries require energy to conduct business.  If you can control the method of payment, you virtually control the world.  The U.S. cut a deal with Saudi Arabia to base OPEC transactions in U.S. Dollars.  With this in effect, nations bought U.S. Government Bonds with their Dollars.  It was a perfect outlet for U.S. Debt.  They trade their physical assets for our paper.  What a great deal… for now.  Did we think the rest of the globe would passively submit to this arrangement indefinitely?

Natural gas is another great source of energy.  The problem with it is the transportation issue.  Oil is “compressed” energy versus natural gas thus a pipeline is the cheapest way to transport natural gas from its source to its consumer.  This is the core issue with Syria and why the U.S will surely attempt to gain control of this country, one way or another.  Look at this map:

If you look at countries with large natural gas deposits, Syria is the logical place to run a pipeline in order to tap into the European market.  Since we know greed is the root of all evil, we must conclude that a major conflict is at hand between the Western nations and the Kings of the East.  Cyprus was the clearinghouse for Russian international monetary flow and was nearly cut off in the recent Cyprus bank crisis.  The Russians were tipped off early and removed a lot of their cash before the “Bank Holiday”.  The Russians currently hold Europe “hostage” with the existing natural gas pipeline infrastructure to Europe.  If a new Western pipeline is constructed for European demand, the Russian revenue and economy start heading south.

Iraq wanted to move away from Petrodollars in 2001.  The U.S. went to war even though the weapons of mass destruction were never found.  Don’t mess with the system in place.  Libya tried to do the same thing.  Same result, the head of the country was removed.

Afghanistan holds a key pipeline route to China:

Notice the border to China on the far right edge.

Syria is key to the Kings of the East and a new payment system detached from the US Dollar and Western banks.  Syria is the pivot point to a Gold Trade Settlement arrangement that brings more importance to commodity backed currencies and proper valid systems for trade. This would bring the end to the U.S. Dollar as the world’s reserve currency.  Syria represents the tipping point in a clash of East versus West.  Do you think the Western Central Planners are going to idly watch while their power erodes?

The destruction of Damascus (Isaiah 17:1) and Jerusalem (Isaiah 29:1-6) may be at hand soon.  Syria is critical to the financial future of the U.S. financial system in its current state.  The stakes are high.  Don’t be surprised to see another atrocity reported which will sway the American Congress and public to support intervention.

In the Book of Judges, we find that large armies tend to self-destruct by Divine Intervention.  Confusion and illusion cause them to act illogically.  Greed tends to blind the aggressor and ultimately Our Heavenly Father will expose the lies and deception.  With all of the global issues coming to a head, surely our redemption draweth nigh.