Servias Ministries Blog

One of the greatest challenges we face from a financial point of view is living in denial. We tend to believe that nothing will happen to us since we have yet to see economic chaos in decades here in the U.S. Other countries have not been as fortunate. History has plenty of examples: Russia, South American economies, Iceland, and Cyprus. In the 1930’s, we had our own crisis. People turned in their gold at the request of the President. Shortly after, the Dollar was depreciated in value, overnight.
We are once again approaching an economic reality of currency depreciation. No one is willing to set a date, but everyone who is not on a government payroll or in pension fund management is concerned about a sudden financial crisis. Central planners have no positive outcome available to them. The current question revolves around how to deal with the crisis and keep the populace from rising up in a dangerous fashion.
The problem banks of 2008 are bigger, at greater derivative risk, and have no remorse about the near meltdown in 2008. We are destined to see a day of reconciling the books of greed. Don’t be surprised when you wake up on a Saturday morning to a press conference outlining an “unexpected and unanticipated” event. They know how bad it is, they just don’t have a viable solution.

By the way, Walmart and Target are both showing bearish formations in recent days. The public is voting with its dollars being withheld from these giants. Richard Russell, famed investment newsletter writer, now has a 1530 target for gold. Interesting number!

And… Greece is now going to need a third bailout.

Last month, the Chinese were net sellers of U.S. Treasury Bonds.  Of course, the Federal Reserve created money and took up the slack.  In recent years, it was assumed the Chinese would buy all of our debt.  Instead, they are buying all of our gold, silver, and hard assets with the paper we gave them for trinkets in the past.

Is the U.S. living in a “Fool’s Paradise”?  Normally, August is a relatively quiet month in the markets.  This year it is different.  The market is poised to push interest rates upward and the Fed is now boxed into a corner.  Black swans are headed this way and we may see chaos in the markets before long.  Keep your life simple and be prepared for any unusual events to come forth.  Central planners get creative when their positions are threatened.  It is not business as usual.

There are as little as 47.5 to 1 claims of paper gold ounces to physical ounces and as high as 100 ounces to 1 ounce of the physical.  When a physical ounce of gold is removed from the market, then paper claims must shrink and they go through a settlement process and it can be paid in cash or ounces.  Two major banks have now stated they will only settle in cash.  Why?  The physical market is too tight to secure the metal for settlement.  The end result is a higher price for the metal and liquidation of inventory.  Both events are now happening.  It is also happening in silver as well:

Beginning Monday, the price of silver has led the charge, with yesterday being a notable increase.  On all counts, yesterday busted through the 100-Day Moving Average trend line:

On April 30th, Our Heavenly Father had me proclaim the 2nd Census.  The price chart has been accommodative to that calling.  Silver prices have been suppressed in the low twenties and high teens during this time.  Silver represents redemption in Scripture.  It is expected to lead the way in price appreciation versus gold (Divine Nature).  Those who were unwavering in their commitment to hold physical assets rather than paper claims may be in for a pleasant surprise soon.  The kings of the East continue their voracious appetite for both metals in the physical market.  The western central planners’ attempts to suppress the gold and silver prices may have finally backfired.  I expect notable volatility going forward as the battle of value rages on.

In Habakkuk 3:4 And [his] brightness was as the light; he had horns [coming] out of his hand: and there [was] the hiding of his power.

The word “power” is the Hebrew word “oz”:

עז `oz:

1) might, strength

a) material or physical

b) personal or social or political

Could that also represent how many “ounces” or oz you have hidden in precious metals or their related stocks?

First the physical, then the Spiritual…

Many of the brethren have been focusing on the revaluation (RV) of the Iraqi Dinar.  Our Heavenly Father has given me no revelation about this revaluation event.  Though it has appeared to be imminent for years, those with Dinar are still waiting to cash in.

In the meantime, it seems that another revaluation may soon arrive: the revaluation of fiat currency relative to gold and silver.  Specifically, the U.S. Dollar is grossly overvalued versus the value of gold and silver.  Devaluation of the Dollar is in effect a revaluation of gold and silver.  We are fast approaching the day where an economic collapse could occur due to the excessive creation of fiat currencies around the world.

Recently, Richard Russell, a well-known investment letter writer of over 50 years, stated:

“But seriously, I believe that the law of supply and demand is a natural law, and it’s a moral law given to the planet by God.  The whole concept of creating money without toil or risk is an integral province of the Federal Reserve.  I believe that one way or another, the Federal Reserve and all it stands for will be eliminated.  The process by which this will occur worries me.  I believe it will take a huge disruption of our current economic system in order to eliminate the Federal Reserve and its immoral process of money being created out of a computer and thin air.

The process of creating money from “nothing” makes a mockery of real work of all kinds.  Thus, by inference, I am calling the Federal Reserve an evil institution.  The more so, since it denigrates gold, which is, and has always been, true wealth, wrung out of the earth through man’s sweat and toil and risk.”  To subscribe to the Dow Theory Letters: https://ww2.dowtheoryletters.com/ServicesOnline.nsf/Subscription+Form?OpenForm

He has studied the financial markets for decades.  That is his calling and his fruit prove it.  A revaluation of all currencies, including the Iraqi Dinar, could be occurring sooner than later.  Holders of gold, silver, and other hard assets may be the ultimate beneficiaries of a revaluation.  Those with fiat currencies may be on the other side of the transaction.  Only Our Heavenly Father knows!

Countries are diversifying away from the U.S. dollar and the Euro as they are perceived more and more as fiat currencies.  Other central banks are reducing dollar holdings and are creating trade agreements dealing in local currencies thus sidestepping the dollar.  An example of barter:  India and China have Gold for Oil agreements with Iran.

China now has local currency swap agreements with Russia, Japan, Australia, Brazil and Africa, bypassing the dollar.  The flight to hard assets versus paper currency is also manifesting in China.  China is loaning its dollar surplus to countries and expecting to be repaid in oil or metals, not currency; a new “barter economics” developing.

Gold is fast being exported by Italy to Switzerland, and the rush of the wealthy toward global real estate, jewelry and art, in an effort to replace fiat currencies with hard assets, is pushing prices to record levels.  Yet the dollar exchange rate is up thus far, and the Gold price is down.  Not for long.

A recent Bloomberg’s headline was, ‘China’s Gold Imports From Hong Kong Slump on Quota Backlog’.  Here is another news article designed to mislead the public.  The reality is that China’s imports of gold fell month-to-month from 104 tons to 101 tons.  Actually, China is on a path to import, just through Hong Kong, 1,200 tons of gold at this pace for the year of 2013.  Does the following graph suggest anything different?

If the world ever starts to price key commodities such as oil in gold, the U.S. dollar will experience hyperinflation.  Purchasing power will be lost at a very high rate of speed.  On the other side of the transaction, gold and silver will skyrocket in relative terms.

We are currently in a slow motion global bank run.  People are converting out of fiat currency into gold, silver, and other tangible assets.  They are losing faith in the fiat currency system.  When this happens, power is transferred.  We have breakdowns occurring on numerous fronts in the global financial system.  The Fed is working overtime to keep the markets at bay.  Mr. Ponzi would be proud of this financial juggling event.

Clearly I long for the Power from On High to manifest fully and completely in the earth.  Love has all the solutions to the current problems.  When the Divine Intent is manifested through the Mature Sons and Daughters and they are endowed with the power and authority, true change will occur.  A system of Equal Weights and Measures will prevail.  There will be Truth in the Transaction once again.

Recent reports show 1,300 tons of gold are missing from the Bank of England.  Further, LBMA warehouse inventories of gold have dramatically decreased.  The London Bullion Market Association (LBMA) is the international trade association that represents the wholesale market for gold and silver, which is centered in London but has a global client base.  Daily gold prices are set in London.  GOFO (Gold Forward Offered Rates) turned negative beginning July 8th.  See: http://www.lbma.org.uk/pages/index.cfm?page_id=55&title=gold_forwards&show=2013&type=daily#latest  In theory, this isn’t supposed to happen.  The gold paper market is breaking down.  This tells us that people want their physical gold now and they are not confident that they can get it in the near future.

The U.S. is releasing highly questionable economic data.  Recently, they changed the meaning of employment to show an improvement in the unemployment numbers.  Before long, the panhandlers on the street may be included as being “employed”.  Don’t forget the children who are paid an allowance for doing chores.  I feel another redefinition coming.

John Williams of shadowstats.com wrote: “This should become increasingly evident as the disgruntled global markets begin to move sustainably against the U.S. dollar.  As discussed earlier, a dollar-selling panic is likely this year—still of reasonably high risk in the next month or so—with its effects and aftershocks setting hyperinflation into action in 2014.  Gold remains the primary and long-range hedge against the upcoming debasement of the U.S. dollar, irrespective of any near-term price gyrations in the gold market.”

What does all of this mean?  Physical gold is moving from the Western nations to the Eastern nations.  The recent smackdown of the gold price did not increase the availability of physical gold for sale but in fact is reducing the supply.  Why?  Because people are buying at cheaper prices and holding as insurance against further currency debasement.  The same is true for silver.  It appears that the central planners called on the Bank of England to handle the smackdown by selling 1,300 tons of gold into the market.  Oops, it did not produce the outcome they hoped for.  Instead, their inventories got “jack slapped” by the Kings of the East.  What were they thinking?

The derivatives in the banking system are highly toxic.  If the Fed begins to taper it Quantitative Easing(printing digital money) soon to any large degree, interest rates are going to go up sharply.  This will literally endanger the entire banking system.  Bond values will plunge, government interest expense will go sky high, pension funds will again suffer greater losses, etc.  It will be like a scene from the Lawrence Welk Show where all the bubbles pop.

However, the populace will not be smiling.  Since 2008, The Fed has printed tremendous amounts of money and the economy will not respond.  They are running out of options.  They know it.  The Kings of the East know it.  We know it.  When will the music stop?  Only Our Heavenly Father knows.

Spiritual preparation is of greatest importance now.  We are approaching a climax of economic change and a majority of the people will not be equipped to handle the change.  They will look to Our Heavenly Father for guidance in the midst of their desperation.  The Remnant will be the ones who will be tasked by Heaven to bring forth the Kingdom.  I don’t think we are decades away from this climax, a few years at the most.  A few days at the earliest.  We must keep our eyes on Above.  Each day counts.

Each transaction has “Intent” behind it.  In today’s world, the biggest challenge for each of us is to discern the intent when transacting with others.  Yes, there is the “letter” of the law so to speak, but there is also the intent behind the transaction.  How wonderful it would be for us to never be concerned whether the person on the other side of the transaction was misleading or deceiving us in some manner!

Each country attempts to enforce truth in a transaction by passing laws to insure compliance.  The U.S. has developed a sophisticated regulatory system to oversee transactions.  However that does not eliminate the problem, it simply manages the problem.  Powerful people tend to be overlooked by the regulators who in turn hope to gain by allowing them to operate “under the radar”.  This is true in the financial markets.  Regulations have done little to dissuade large players from deceiving and manipulating the market for unfair gain.  The current system is on the precipice of failure due to the lack of “Truth in the Transaction”.

Gold and silver-based economies have historically prevailed in support of truth in transactions.  Why?  Men cannot manipulate the value of these precious metals.  However, they can reduce coin content and replace precious metal with cheap metal.  Yes, that has been done many times throughout history.  Lawlessness seeps into the monetary system as greed takes over.  This lawlessness continues to grow until the overall system collapses due to mistrust.  The current economic system is rapidly moving toward this day of reckoning.

What initiates this day of reckoning?  I would suggest that it is Divine Intent.  Our Heavenly Father judges the condition of mankind and moves to expose the lawless and corrupt system so that the people will repent and turn from their wicked ways.

What can you and I do about this problem?  We can pursue doing business with those who promote “Truth in the Transaction”.  After all, we transact business everyday, every minute, with a multitude of businesses.  Whether we are buying electricity to keep the lights on or purchasing groceries, we participate in transactions on a daily basis.

I see the evolution of unity153.net including the promotion of the “Truth in the Transaction” way of doing business.  We all want to pay a fair price for goods and services, don’t we?  Wouldn’t it be nice to do business with someone who has your best interest in mind?  On the other side of the transaction, wouldn’t it be nice for the buyer to promote a fair price rather than figuring out how little profit they can squeeze out of you?  Profit is necessary to sustain a thriving business.  In the Parable of the Talents, Our Heavenly Father expected the servants to make a profit.  HE expects a fruitful harvest.

In the next couple of months we will be bringing a vitamin/supplement company to fruition.  This company will base its existence on “Truth in the Transaction”.  The name of the product line is Creation’s Nutrients.  It is a “for profit” business.  The goal for this entity is to be a template for other businesses to follow.  We are still working out the details but the goal is to market supplements based on the unique need of the individual, rather than using the “scatter shot” approach.  This entity is being designed with the motivation of Love for the customer.  Yes, we will need to make a profit but moreover the customer needs to have an improved quality of life.  How can we achieve this?  By the exchange of information.  Pam and I have been taking these supplements for over a decade (under a different private label).  Our health has been excellent over this time period.  When there is some issue, I add a supplement that supports my body’s ability to deal with the issue.  After all, the body is designed to heal itself.  It helps to provide it the building blocks it needs.  Each of us has a unique, dynamic system.  One supplement does not fit all needs.  However, many people suffer from similar deficiencies in their diets.  Pinpointing solutions by exchange of information will help all of us stay healthy.  I expect our long-awaited EDS project to play into the equation as well.

What would happen if a new infrastructure were to be built based on this concept of “Truth in the Transaction”?  I believe over time it would take root and overtake the other systems in place.  Righteousness will prevail.  Now you know what some of us are thinking and have been discussing for some time.  Maybe you can get a better understanding of the intent behind www.unity153.net.  Maybe its time for you to reveal yourself to us by registering at the site or… you can simply remain incognito and watch from the outside.  It’s your choice.  More to come.

I rarely have a watch date but August 12th happened to have come up on the “radar”.  It could be economically oriented.  Be vigilant!  I have no other details.  If nothing happens on that day other than the usual, no worries.  It may be personal or corporate.  At this juncture, I have no idea.

All of us take part in transactions everyday of our lives.  A transaction is any activity that involves an exchange of value.  When you breathe, you exchange carbon dioxide for oxygen.  The plants win, you win.  What a great and fair system of exchange.  Transactions occur inside your body as well as all across the universe.  In economics, we mainly focus on business transactions and their impact on our finances and our wellbeing.  In this sense, a transaction is any activity in business that involves money. It occurs when something of value is exchanged with something else of value.  In this arena, man has the ability to directly influence the outcome whether it is good or bad.  Our Heavenly Father placed the Law of Equal Weights and Measures to establish a standard by which men and women should conduct business:

Leviticus 19:35 ‘You shall do no injustice in judgment, in measurement of length, weight, or volume. 36 You shall have honest scales, honest weights, an honest ephah, and an honest hin: I am the LORD your God, who brought you out of the land of Egypt.

37 ‘Therefore you shall observe all My statutes and all My judgments, and perform them: I am the LORD.’ ”

There should be no question where Our Heavenly Father stands concerning business conduct.  The buyer should never pay too much nor pay too little.  It does work both ways.  It should be a fair exchange of value.  It should be a win-win situation.  This standard should permeate throughout business and economics but it doesn’t.  Lies, deception, misleading statements, exploitation… have all become commonplace in our society.  All of these are acts of lawlessness will one day be reconciled.  It seems we have to be vigilant nearly everywhere we transact business these days.  How refreshing it is when we do business with an honorable person.  There are many laws on the books concerning truthfulness but for the most part, they are not enforced.  Man, I wished I received a hamburger that looked like the one advertised in the commercial!

Government reporting has become substandard.  Why?  Men have interjected their bias for political gain into the equations to improve the perception rather than simply report the facts.  They understood the power of managing perception of the populace by reporting an illusion so often people actually believe it to be real.  Remember the Titanic?

John Williams at www.shadowstats.com created a business of reporting the facts about the economy using the government’s own data.  He simply uses the formulas the government used prior to their manipulative adjustments so that his subscribers could look at “apples to apples” comparisons, a fair look at the economic trends.  He provides us “truth in the transaction”.  The latest employment numbers in the following graph provide the stark comparison of the truth versus man’s manipulation”

John’s Blue line shows the reality of the U.S. unemployment.  The red line shows the managed perception.  Yes there are pockets of prosperity around the country but they are offset by the severity of unemployment in other areas.  Remember, he uses the raw numbers generated by the government’s data collection process.

Each of us makes decisions based on the information available at the time.  If the information is based on unequal weights and measures, our decision will be flawed and could prove to be disastrous.  If an auto manufacturer has a design flaw in their braking system, wouldn’t you like to know before you purchased their vehicle?  If a business has a history of deception, would you want to buy a product or service from them?  In the end, we all want truth to prevail in our transactions.

In 2008 when the Fed lowered the savings rate to virtually zero, the retirees were severely hurt.  To add insult to injury:

Swaps Probe Finds Banks Manipulated Rate at Expense of Retirees  

See: http://www.bloomberg.com/news/2013-08-02/swaps-probe-finds-banks-manipulated-rate-at-expense-of-retirees.html

I will soon be writing about “Truth in the Transaction”.  It’s time.