Servias Ministries Blog

Let’s look at a couple of statistics:

In 1980 the U.S. federal debt was $1 trillion, and today it’s $17 trillion.  Total world debt was probably around $10 trillion to $15 trillion in 1980, and today it’s $250 trillion.  The overall derivative exposure has been reported as being $1.4 quadrillion, nearly 6 times the overall global debt.  The unwinding of all this debt will not end in an orderly fashion.  When there is debt, there is also a creditor.  Some of those creditors are pension funds.  If debt is erased in some fashion, pensioners will probably suffer.  A crisis is surely on the horizon.  $10,000 gold will not offset the pain of those without.

The entire system could go into shock and when that happens, be prepared.  This shock will include the value of paper money crashing, stock markets and  bond markets collapsing, a failing financial system, and surging interest rates.  Countries will be in no position to maintain public services.  Social Security will be at risk.  Infrastructure such as hospitals, schools, public transportation, roads, police protection, and fire services will be reduced or eliminated where possible.  This will then lead to social unrest and crime.

The above scenario is a form of judgment on the nations.  If and when that judgment comes, there will be a response from Heaven.  There will be those who are raised up to minister life to the people who have lost everything.  They will no longer looking for answers elsewhere but will seek out those who hear Our Heavenly Father’s Voice.  For those who have ears to hear, pay close attention!

I strongly urge you to stay vigilant concerning unusual emails and websites.  Antivirus software is usually in response mode to new hacking methods.  This means that some people will get hacked and report it, then the antivirus software providers fix the newly found weakness.  I received an email this morning from an associate:

To some of my addressees:

My personal AOL account address list has been hacked bypassing Norton that should have blocked it.  You may have received an email from me with the subject "confidential document."  Do not open, or if you do open, absolutely don’t follow the instructions to click on links and/or log in with your email address using your personal password.  Delete immediately! 

I am so sorry the bounced scam was sent to you.  AOL and Norton has assured me the prevention of further invasion is fixed.

These three physical assets are set to rise in price.  Just when you thought the U.S. couldn’t handle another war, here we go again.  Oil is now pushing $110 per barrel, gold is poised to break through $1,600, and silver is ready to catapult to the $40-$50 range, and beyond.

I have maintained that oil reached its global peak supply back in the 2005 time frame.  The price has reflected that conclusion for the most part.  There were expectations of $30 oil but it never materialized.  A global depression could bring the price of oil to $30 but I don’t think anyone wants to see that happen.

Silver has been leading the charge in the precious metals group.  Those who were betting against silver are now covering their losses.  Those who were buying the metal below $20 (excluding premium) are smiling now.  Related stocks are recovering nicely.  It was emotionally tough to keep buying as the prices were falling, but now we are being rewarded for our convictions.

I still contend that the silver/gold ratio should be 16/1 in price terms.  For this to happen, silver must skyrocket in price.  Silver’s industrial use will increase as the global population demands technologies requiring this metal.  Long term gold prices are suggested to be between $10,000 and $50,000 per ounce in U.S. Dollar terms.  Devaluation of fiat currency will help move gold to these heights.  People will lose purchasing power but the Federal Debt will get paid with depreciated Dollars.

When the precious metals soar to new highs, the derivative investors who bet on gold prices declining will take a financial bath.  There will be some significant bankruptcies take place.  Only then will we know how much “betting” was happening without any real regulation occurring.

The markets are already expecting the U.S. to lead an attack in Syria.  An attack may be scheduled after the market closes on Friday.  This allows the investing public to absorb the emotional shock of war before the market opens on Monday.  War tends to remove the focus from the economic issues at hand.  These issues are sizeable to say the least.  This may provide the central planners with a plausible reason for gold, silver, and oil to reside at higher levels even though they are heading that way already.  Isn’t it amazing how much energy is spent managing the masses!

Map by Deadspin.com

My Comment:  How sad!

Based on Generally Accepted Accounting Practices (GAAP), The United States is broke.  One can argue that if you can print money, then you are not broke.  That is only true to a certain point.  When your money is no longer accepted as payment for goods and services, then printing money no longer satisfies the payment of obligations.  A country’s overall production creates wealth and that wealth is really what pays the bills going forward.

When you go to a bank to borrow money, they look at your ability to repay both the principal and interest.  They look at your past performance, the stability of your employment, and any assets you have that can be converted to loan payments.  Your interest rate is consistent with the inherent risk of repayment.  Your loan is consolidated with a basket of consumer loans of similar risk.  The bank’s expectation is that not all of the loans will underperform and that the additional interest charged will cover any loan losses of the portfolio.  This assumes a stable currency.

What happens when the nation’s currency is no longer wanted as payment for goods and services by other countries?  Before August of 1971, they could demand payment in gold and get it from the U.S.  When Nixon closed the “Gold Window” and ceased the convertibility of Dollars to gold, a whole new experiment began.  How could the U.S. get away with mandating a fiat currency policy?  The U.S. Dollar had been the “reserve” currency for use around the world and it was so interwoven into all commercial transactions, there was no feasible way to disconnect from the Dollar.  The U.S. also had the most advanced military in the world.  Nobody was willing to challenge the decision.

Other countries have spent the last 42 years thinking about how to do international business without the U.S. Dollar.  Iraq tried an “oil for gold” program bypassing the U.S. Dollar.  Suddenly, events occurred that caused the U.S. to invade Iraq and remove that plan.  Other countries have been dissuaded from bypassing the Dollar.  Little by little, China, Russia, Brazil, and India have been creating partnerships to bypass Dollar-based transactions.  They have been accumulating gold which in turn could allow them to have some type of gold-backed currency as a guarantee for international transactions.  Where is the gold coming from?  The Western vaults.

For the first time in history, all nations are printing large amounts of money without any gold backing.  The current system will fail.  If you watched the video from yesterday, you can see that there has never been a successful end to this scenario.  Pain will come.  People will cry out for a new system, quickly.  The Chinese know it, the Russians know it, and others who are accumulating gold and silver know it.  Wealth can be attained a couple of ways.  One way is for your investment to appreciate.  The other way is for everyone else’s money to depreciate.  The goal is to retain purchasing power in a medium that will continue to be accepted no matter how the collapse plays out.  For most of us, silver plays that role.  For some of greater means, gold will be acquired.

The U.S. may never admit it is technically broke.  However, when interest rates go up by creditors demanding additional payment for greater risks, there will come a day that those in charge must do an accounting.  When that happens, 401K’s, IRA’s, Pension Funds will all be targets for cash to “bail out” the government.  You will be told a plausible reason for you to hold government bonds in your account.  You will once again pay for the poor decisions of the central planners.  However if you see what is coming, you can at least minimize the pain by safeguarding what little you have from the depreciating currency and its impact.  This is why I have been warning you for the past several years to downsize your exposure to unexpected events.  Most of us don’t have a lot of wealth but if we reduce our leverage, simplify our monthly needs, and focus our attention to what Our Heavenly Father is saying, then we will be the least impacted when this day of reckoning arrives.

The following graph provides some detail of China’s direction:

This last week, Nasdaq Stock Exchange shut down for 3 hours.  See: http://dealbook.nytimes.com/2013/08/23/after-mishaps-nasdaq-loses-standing-to-rivals/?_r=0

Google, Amazon, NY Times, and Microsoft went down as well.  What is the probability that all five of these entities would suffer a loss of system communications in the same week?  Nearly 0%

Some of you may not know that I have held IBM Technical Certifications continuously for about the last twenty years, ever since they started their certification program.  I should know something about industry system redundancy.  These companies have spent millions to billions of dollars to insure they are online 24×7, 365 days per year.  They have multiple redundant sites, mirrored databases to allow a split-second cutover if there is an outage at one of their several locations.

As I wrote in a previous blog, if you want to take control of the population, you must take over communications first.  Can you see now why I prefer to keep a manual checkbook versus doing all of my transactions online?  The probability of planned interference of communications among these five giants is high.  This could have been a “field” test to verify the ability to execute a selected communications blackout.

What is the other plausible explanation?  As I have written in other blogs, the system is getting so complex, it is moving to the point of failure due to over-complexity.  Either way, don’t put all your eggs in one basket.  You may not get access to them one day.  If and when that day comes, be prepared to live a simple life without the Internet.  Do you have any cash on hand?  Does your pantry have a little extra food?

The CEO of the Nasdaq was quoted by others: ““A number of people have recounted sales meetings in which Bob led with the slogan ‘our customers are our hostages,’ ” Mr. Cummings’ letter said.”  Has the Internet made you a hostage?  Not me.

We are moving quickly to the edge of an economic collapse.  Am I promoting a collapse?  No.  I would prefer to see an orderly transition to a new economic system but it is not my call.  That belongs to Our Heavenly Father.  Has HE caused orderly transitions in the past?  Not that I have seen in history or Scripture.  The term “then suddenly” comes to mind.

Greed has a subtle way of infiltrating men’s affairs.  Being the root of all evil, we can we how its works behind the scenes to bring forth calamity and chaos.  If you have not read the link http://www.gods-kingdom-ministries.net/daily-weblogs/2013/08-2013/larry-summers-and-the-secret-end-game-memo/  , now might be a good time.  It may not stay up long.  In my European travels in the late 90’s and early 00’s, I was exposed to this subterfuge that went to the highest levels.  The “system” was used by men for personal gain.  After they leave office, they never seem to need to work again.  Hmmm!  Foundations get started and they become statesmen, and I use that term loosely.  Power is a symptom of greed and it is insatiable.  The fundamental problem with their assumptions is that they will collapse the system they need to keep them in power.  The endgame is self destruction.

There will come a great Jubilee out of all of this debt.  I don’t know the mechanics at this time, but the current system will implode at some point.  This jubilee might have a lot of pain attached to it.  There will be wailing and gnashing of teeth by those who have trusted in the current system.  They will have difficulty adjusting to the emotional pain they will suffer and sustain for a period of time.  Their trust in money, cars, large houses, and other “stuff” will evaporate over night.  Their current life of denial will suddenly be exposed.  Some will have nervous breakdowns from the sudden loss of perceived wealth.  I saw that happen to a man in 1985 when his “empire” came crumbling down.  Greed and power left him… suddenly.  It was ugly.

Our Heavenly Father has always reserved a Remnant for HIS use:

Isaiah 1:9  Except the LORD of hosts had left unto us a very small remnant, we should have been as Sodom, [and] we should have been like unto Gomorrah. 

This should be comforting to us that Our Heavenly Father will see us through what lies ahead.  We should not fear the future for Our Heavenly Father is not slack in HIS promises.  HE sustained HIS children through epic challenges in the past.  HE will do it again as we approach the challenging times ahead.  Our responsibility is to be prepared, not sit in a corner doing nothing.  Our preparation starts with the Spiritual.  Are you weak when it comes to Love?  Then focus on Love.  Are you weak in faith?  Focus on faith.  Encourage yourself in the Scriptures.  Read related books by those who have been anointed to teach.  Let your works reflect your commitment to serving mankind.  Our Heavenly Father knew a famine was coming when HE placed Joseph in a 13 year training plan.  Mankind did not escape the famine but went through the famine, led by a man of GOD.  Joseph was willing to serve all of mankind, not just his own family.  Broaden your perspective.  You may be called to increase your “tent stakes”.  Don’t be surprised when people lose all they have and finally seek those with the Truth in Love.  Currently, $250 Trillion in debt has many captives.  Soon, they may be set free.

One might ask why I focus so much on gold and silver in the Economic blogs.  It is because Our Heavenly Father established these precious metals for use in fair trade.  HE is the One Who placed value on these metals and instilled that value in the human race.  In Scripture, gold represents Divine Nature and silver represents redemption.  These metals provide a basis for “truth in the transaction”.  Why?  The love of money (aka greed) is the root of all evil.  Greed causes men to falsify either one side or both sides of a transaction so you need “truth” established in the medium of exchange.  Gold and silver provide this function.  They are impossible to counterfeit, though men have tried.

Fairness in transacting business relies on a known standard of exchange.  One ounce of gold in known for its value worldwide.  This is true for silver as well.  On one hand central planners would have you believe that these metals are ancient relics but you must ask the questions: “Why do all central banks maintain a physical supply of gold?”  “If the metals are no longer relevant, why don’t they sell all their gold and take the proceeds to pay off debt?”

Until men are honest, gold and silver will be needed to conduct business.  When do you think we will see an era of honesty sweep the earth?  I believe only when the Age of Tabernacles has fully come.  My hope is that it arrives today.  Daily, I focus on moving closer to My Heavenly Father and fulfill my part in the Plan of the coming Age.  Until then, we must live in a system filled with lies and deception.  As in the days of Noah…

From a practical standpoint we must sustain ourselves on a daily basis during the transition.  I look forward to the fullness of time, but until it arrives, I will convey my best revelation and understanding to what is happening in order that those who acknowledge my calling, may also be prepared for the turbulent times ahead.  I rely on others’ callings to provide me with counsel in areas where I am not called.  If I have a deficiency in nutrition, I call my friend Doug.  He lives and breathes nutrition.  If I need some construction done, I call my friend Roy, he is an expert in house framing.  If they seek counsel in the financial arena, I am their “go to” guy.  That is how revelation flows.  You don’t ask someone who has produced no fruit in an area to recommend a course of action.

In the macro view, I expect current systems to begin collapsing before too long.  Why?  Greed continues to abound in an unrestrained fashion.  The 2008 financial crisis did not produce any convictions of primary players.  We saw no CEO’s of top global banks do a “perp” walk with handcuffs.  It would appear that they are above the Law.  There is no way they could be innocent in the near collapse of the global banking system.  The LIBOR scandal produced no convictions.  The manipulation of markets produced no convictions.  The NSA now admits they broke the law… unintentionally.  I guess Mr. Snowden was really a whistleblower based on the definition.  The value of the U.S. Dollar continues to decline.  There are now 50 million people (in the U.S.) estimated to be on food stamps but the employment numbers as well as the inflation numbers continue to be “cooked” in order to project a better economic picture according to John Williams.  What happened to “Truth” in these areas?

The moral fiber of this country continues to decline.  Perversion has become accepted as the “new” normal.  Look at the TV shows and they are attempting to redefine the family structure.  How long will Our Heavenly Father allow this to continue?  Until HIS Remnant has been fully prepared to step in and usher in HIS Kingdom.  Until then, I will do my part in helping the brethren in the areas I am called.  I will be an economic “watchman”, help others in the expression of their calling, and Love people as an expression of Our Heavenly Father.  I will also do my best to further the “truth in the transaction”.

As the lies and deception become widely known, the collapse will gain speed.  People will flock to known stores of value: gold and silver.  They will drop their fiat currencies like hot potatoes.  Will central planners sit around and do nothing?  No.  They will attempt to place controls on conversion and transportation of monetary value.  They will try to tax value away from the holders of hard assets.  They will go after pension fund money and replace current investment with government bonds.  They will pull out all stops before the collapse is complete.  Then they will claim that they didn’t see this economic chaos coming, hoping to persuade the masses to keep them in control.  The drama continues…

One of the first things an invading army does is to take control of communications. This is getting more difficult with the way global communications is structured. Every smart phone can record history and transport it for all to see.
India tried to restrict it’s citizens from buying gold. It has failed. Their currency has dropped like a rock and they are desperately trying to salvage their accumulated wealth by converting to gold and silver. Colombians are now trying reverse “free trade” agreements executed with the U.S. American goods are now undermining domestic markets as a result of the QE efforts by the Fed. All the free money is going to show up somewhere. The Columbians are getting mad and are now protesting. Notice that very little is reported on American Network News.
Overall, the markets are now too complex for central planners to control. They focus on solving one issue and three more show up elsewhere. How does the average person guard against this intrusion? Simplify, de-leverage, and most of all, focus on your relationship with Our Heavenly Father.