Servias Ministries Blog

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.

Gold went into to backwardation recently.  Backwardation is the name for the condition that the market quotes a lower price for a more distant delivery date, and a higher price for a nearby delivery date.  This means that people want the delivery of gold now rather than later in the futures market.  Why?  There is developing an expectation that delivery might not occur later and the settlement could take place in cash instead.  Trust is leaving the system.  People are now getting concerned there might be a shortage of physical gold available for sale and delivery.

Consider this, the global economy is worse off today than it was in 2008 and the stock markets are at record highs.  Why?  The central banks keep pumping money into the system but the underlying system is not improving.  Can the U.S., Britain, Japan, and other large European countries ever pay off their accumulated debt?  Not in today’s currency value.  Only by further depreciating the currencies can they attempt to pay off debt.  Yes, you can print enough dollars to pay off outstanding debt but the currency would severely devalue as you complete the process.  Your creditors would be the losers.  Do you think bondholders will tolerate a severe depreciation of value of their holdings?  No, they will demand higher interest rates to offset devaluation.  If this happens then the United States will have a severe increase in interest expense and consume much of its tax revenue.  The Federal Reserve manipulated the interest rate down to cap the nation’s interest obligations.  The Fed is between a rock and a hard place.

As I have written in the past, the price of gold is the canary in the mine.  If the price shoots up, it is an indication that currencies are depreciating at a higher rate.  This is why the central banks have committed to manipulating the price of gold, especially in the last two years.  This can only happen to a point before the global investors as a whole see through the scam.  Once that happens, the paper price of gold (futures market) will decouple from the physical price of gold.  Backwardation is the first sign of this occurring.  Premiums for physical gold are beginning to increase.  At some point you will not be able to reconcile the paper market with the physical market.  When this day arrives, the paper market will crash and the physical market will take over in pricing.  I would expect us to see dramatic increases in the price of gold on a daily basis.

In the last seven years, the U.S. official debt has gone from $8 Trillion to $17 Trillion.  Employment numbers do not reflect any true improvement thus the tax base cannot pay off the increased debt.  It took the country 200 years to get to $8 Trillion.

Government bonds will collapse and pension funds will suffer dramatically.  Expect to see additional cities and municipalities file bankruptcy when this occurs.  Wealthy investors’ bond portfolios will dramatically contract which will cause them to quit spending.  This will have a cascading affect further affecting the Gross Domestic Product and reducing tax receipts.  In turn, the government will have to borrow more money.  There is not a positive outcome to this situation for the current system.

Currently in most countries, governments are the only buyers of their own debt.  What’s wrong with this picture?  This means that debt is increased simply by printing more money with no backing.  A decline in purchasing power is assured for those holding that currency.  Isn’t this fraud at the highest level?  This satisfies the Ponzi scheme definition.

A hyperinflationary depression is a likely outcome.  This is where prices increase even though demand from lower output decreases.  It’s a double whammy.  Higher prices with less people employed.  This would ultimately cause a reset to the system.  A system of equal weights and measures is the only plausible alternative once you have lost trust in the current system.  If people no longer trust the current money being issued, they will flock to an alternative store of value.  Gold backwardation is the first sign that this could be happening on a large scale.

John Williams of www.shadowstats.com stated in his July 17th newsletter:

Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system.  The financial system still remains in the throes and aftershocks of the 2008 panic and near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government.  Further panic is possible and hyperinflation remains inevitable.

Our Heavenly Father is the only One with the path of deliverance from this mess we are in.

Recently, I was sent an email from the Marriott Hotel chain warning me that their “world-class” site had been compromised and that hackers had obtained some of the passwords to their clients:  “There have recently been attempts made to gain unauthorized access to a small number of members’ online accounts.”  Notice how there was little information concerning the extent of the compromise.  I wrote my first software program forty-two years ago in Fortran IV and have written over a million lines of code since.  If there is anything that I have learned over the years, there is always a weak link in any system and it can be exploited by hackers.  A system can be “fool-proof” but may not be “hacker-proof”.  Systems are built by people and those people are of varying levels of expertise.  Personal assumptions and bias are embedded in the design and implementation of those systems thus the hackers look for the unanticipated.  Since Our Heavenly Father is the only flawless One, all of men’s systems will contain flaws.

J.C. Penney’s computer network has been compromised for over seven years by hackers.  Other companies that were victimized included electronic stock exchange Nasdaq, JetBlue, Heartland Payment Systems Inc. and the Belgium bank Dexia Bank Belgium.  Hackers stole over 160 million credit card numbers.

We have a perception of security but the reality is we don’t have a guarantee of security.  This is why physical paper checks are superior to electronic transactions from the consumer point of view.  The physical piece of paper eliminates the ability of someone on another continent creating a fraudulent transaction on your checking account.  Banks assure us that online checking is safe.  Yes, the transmission link may be encrypted but how do you know that a hacker hasn’t loaded a “ghosting” program on your pc that records every keystroke of your keyboard then sends it to his database for later use?  If he knows what website your are at and knows what keystrokes you entered, then he knows your User ID and password.  Get my drift?  A smart hacker will simply gather the data until such a time he decides to sell it to someone else.  If hackers target a single bank or group of banks, how much damage could they inflict?  This is why I don’t do internet banking.

The Weakest Link applies to all aspects of systems and organizations.  The weakest link in credit processing is the minimum wage server who takes your physical card, takes a picture of the front and back and texts it to a buyer for $10.  Later that buyer encodes a card for use at a gas station or fast food restaurant.  The transaction may not be noticed.

As man’s systems become more complex, there are more inherent weaknesses in the systems.  At some point, those systems are at risk of collapsing.  This is true of the current global fiat currency system.  Since all of the major countries are fiat-based, there is no physical backing to keep men from exploiting the weaknesses of the system.  This is what lawless men do.  With over 1 quadrillion dollars in financial derivatives in existence, the question is not whether they system will have a fatal flaw causing a collapse, but when.

Another reason to simplify.  Also, you can’t “hack” gold & silver coins.  It may not be a bad idea to keep a couple of coins around, just in case.

If you believe that the current economic system of fiat currency is at risk of failure, then-

To minimize personal pain if and when the coming economic crisis arrives:

1. Your equities are held in certificate form.
2. You have no Federal retirement funds.
3. You have no CDs and investments in bonds.
4. You store your own precious metals.
5. You have no mortgage obligations.
6. You keep cash on hand for 6 months expenses.
7. You have no consumer debt at all.

If you believe that the current economic system is solid and will continue indefinitely, then-

1. Do nothing, all is safe and good.

This week JP Morgan announced it is exiting the physical commodity trade business amid scrutiny.  See: http://finance.yahoo.com/news/jpmorgan-exit-physical-commodities-business-195443069.html

Let’s review the scandals:

1. Banks manipulated Mortgage-backed Securities which led to the 2008 meltdown

2. Banks manipulated the LIBOR rate which sets interest rates worldwide on trillions of dollars of investments

3. Banks manipulate the gold and silver commodities

4. Banks manipulate the aluminum market

We must conclude that banks virtually manipulate the entire “current” financial markets in one form or another.  They have done this for years with impunity.  When they got into trouble, governments bailed them out with taxpayer funds or newly created money, a future liability to taxpayers.  This fraudulent behavior is worldwide.  The deception is so widespread that it would be hard to find a jurisdiction that was not affected.  What about your local bank?  Unfortunately its interconnectedness to the larger banks put it at risk as well.  Let me explain.

On a daily basis, the local bank sells its excess funds to a larger “correspondent” bank who has an ongoing relationship with it.  These funds are called “Fed Funds”.  A smaller bank might sell $10 million to the larger bank overnight.  The next morning the smaller bank receives the $10 million plus one day of interest income.  The larger bank will accumulate funds from many of its correspondent banks and sell to a money center bank such as Citibank, JP Morgan, etc.  Typically it will make a small margin buying and selling.  I worked the cash desk at the largest bank in Oklahoma in the 1970’s where I bought and sold around $100 million in Fed Funds.  Our overall deposits were about $650 million.  Our capital structure was under $100 million.   Effectively I sold more cash than our capital structure or stockholder equity.   This happened every day of the year.  What would happen if the New York bank failed to deliver back our money?  We would immediately become insolvent.  What would happen if we failed to deliver our smaller correspondent banks’ money?  They would also be insolvent.  These funds are sent through the Federal Reserve wire system.  The Fed has full knowledge of everyone’s accounts but it is all electronic money.  Currency never moves between banks in this market.

As you can see the current system is so interwoven that if one of the money center banks went insolvent, it could take down the entire system.  This current system is built on trust since there is no gold backing any of the money being traded.  The same is true for your bank deposits, your pension balance, your social security, and your stock brokerage account.

I am not excited about being the purveyor of bad news.  I relay this information so that you can make adjustments to your financial state.  Be cautious going forward.  Simplify, get rid of “stuff”.  Get out of debt.  Buy a little silver each month.  Keep the cupboard full of non-perishable food and rotate it to keep the food fresh.  Keep your vehicle serviced.  Try to lower your ongoing monthly bills if possible.  Pain is sure to come to the masses.  I cannot tell you when for Our Heavenly Father has not told me.  However, as you focus on hearing HIS Voice, HE will guide your steps in the turbulent times ahead.  I am convinced that Love will see us all through the coming economic storm.  HIS thoughts are above our thoughts, HIS ways are above our ways.  HIS Love has all the answers needed to endure the trouble ahead.  The Remnant will have taken on HIS Nature and will be plugged into the solution.  The rest of the world will be looking to this Remnant to show them the Way.  The illusions the populace were led to believe will be exposed and they will realize they have been blinded to the point of trusting a system built on smoke and mirrors.  There will be much gnashing of teeth.  If you have been forewarned about the coming challenges then you can deal with any fear that might try to grip your heart.  There will be many with much fear and desperation.  They will need to hear a calming voice.  It will not be the end of the world, only the end of a failed system.

The answers to the physical realm reside at a higher level in the Spiritual realm.  If you can connect to the Spiritual realm then you will find the answers you need for the challenges ahead.  We offer books at www.unity153.net to help “connect”.  If you can’t afford them, we will give them to you for free.  Write us at:

Servias Ministries

PO Box 1471

Bethany, OK  73008

If you want to join us in our pursuit of becoming mature “Sons of GOD”, join us at our weekly Bible study at 3PM CDT on Sundays.  You can watch live or watch the recorded previous broadcasts at http://www.ustream.tv/channel/the-baptism-of-love

We are doing our part to minister Love, life, and reconciliation to all men and women around the world.