Servias Ministries Blog

Although the mainstream media reported a rosy U.S. employment picture, the raw numbers reflect a different reality. Instead of the reported 190,000 increase in jobs, shadow stats.com reports a loss of 240,000 full-time jobs. Further, unemployment remains high at 23.4% according to John Williams.
I report U.S. centric numbers since the American economy has such a dramatic impact on the rest of the globe.
This week I have been re-reading Kemper’s book “Raising a Remnant” and he does a great job of reminding us that lawlessness will increase as the Remnant is being prepared. The above numbers may only get worse as we move forward in preparation.
Men like John Williams provide us with facts that are hard to acquire by other means. His work is an act of Love whether he realizes or not. As Kemper stated “the love of the truth will bring us to the fulfillment of walking in the truth”. May the truth prevail!

The worst thing a person can do is to live in denial of the truth. The Scripture refers to it as being blinded. When you stray from the reality and place your hope in an illusion, you become unfruitful. That is exactly what is happening in the U.S. Government programs have provided people with no incentive to work and now we have a generation who believe they are entitled to the basics of life from the system in place. Escapism has prevailed, aka drug addiction, and now is a multi-billion dollar industry. Productivity or fruitfulness has suffered.
The entire system is one of illusions. There is no wisdom from Above but instead it is a sensual wisdom that feeds itself with the various lusts. Are the lusts illegal? No problem, just change the law in favor of those who promote such lawlessness.
In the end, Love will not be denied and the current system will be judged with extreme prejudice. The fleshly, lustful nature will be cut away and man’s reliance on the current economic illusion will be “circumcised”. Leaders will be further exposed and their deception will be the basis of the judgment that is sure to come.
Will the market crash and wipe away the mammon? See http://www.marketwatch.com/story/new-doomsday-poll-98-risk-of-2014-stock-crash-2013-06-29

The Kings of the East continue to drain the readily available gold and silver inventory from the system. They are trading the accumulated U.S. Treasury debt of years past. Americans have accumulated “Made in China” goods, much decaying in garages and storage units, or bigger houses, aka McMansions. The baby boomers have mortgaged the future for instant gratification of the present.
A black swan event such as a “failure to deliver” on a contract by a large bank could initiate the next systemic crisis, believed to be about ten times worse than the 2008 debacle. Do you think banks will take any other action than protect mode if one of their own fails to deliver? Fed funds are overnight deposits, bank to bank. You sell excess funds typically to a larger bank for one day then they return the funds through the Federal Reserve the next day. What happens if one large bank fails to return the funds? The Federal Reserve would step in but once the system realized that the bank was in trouble, liquidity would dry up and everyone would begin hoarding their cash. Lending would dwindle, profits would tank and banks would sustain greater losses in an already fragile system.
It would not hurt to keep some currency available outside the bank. It is better to have too much cash than not enough. Keep your eye out for a black swan!

In my opinion, Basel III will be insufficient to offset the losses that are already imbedded in the system. Back in the 1980’s during the last major banking crisis, the most capitalized large bank in Oklahoma had a capital structure of 10%, superior to the Basel III requirements. It did not matter. Real estate and commercial loan losses ate up that capital base quickly. Regulators were not as lenient then as they appear to be now. Ask Dr. William Black, former regulator during the S&L crisis. He claims that “felons” are running the financial institutions now, thus the system is primed for a meltdown. He may be right. Protect yourself if possible. The current system is extremely vulnerable to any unforeseen event that could cause the population to exit the banking system. That would be a “black swan” event. It is time to be vigilant and listen closely to Our Heavenly Father. Last week’s takedown of gold and silver may still be in play. Remember, gold will keep its value long after paper currency drops to zero.

In just 7 trading days, 580 tons of physical gold were purchased by eastern central banks. This represents about 25% of the entire annual global mine production. The East is busy protecting itself from the reckless acts of those in control of the western financial system. Ultimately there will be a showdown between the East and the West. In reality, the conflict is between righteousness and lawlessness and the Kingdom will prevail… As always.
In times like this, it is of the upmost in importance to hear Our Heavenly Father’s Voice! We must set aside all non-essential activities. Does it mean that you do absolutely nothing? Not likely. It means that as you wait to hear His instruction, you continue to operate in your gifts and calling, eliminating the noise of the world that would have you venture out into areas outside your gifts.
Seeking wisdom from Above is of paramount importance. The media continues its attempt to cause you to abandon your righteous beliefs for man’s traditions and lawlessness. Their goal is to enslave you and control your thoughts into submission to their various agendas. Their craving for power will never be satisfied. Only righteousness is everlasting and brings forth peace to the soul.
Our Heavenly Father is moving upon men to expose Mystery Babylon at this time. Judgment of the current system seems to be here now. There will be violence among the counterfeit systems that have attempted to replace the Kingdom’s system. History reflects the consistent failure to implement a system apart from the righteous standard of Our Heavenly Father. Each generation thinks it is smarter than the previous only to fail in the midst of its folly. As we become one with Our Father, we will be found worthy to establish righteousness as a standard to be followed by all men. When their eyes are opened, they will weep in their pillows, realizing their folly.
There are seven pillars of wisdom. The number 7 means Spiritual perfection. It looks like we need to focus on wisdom, eh? After all, true wealth is obtained through wisdom. Proverbs 3:13-15

Both gold and silver have been slammed this week in an all out attempt to discourage investors.  The modus operandi remains the same- unload a large position during thinly traded market hours when there are no buyers to keep the price in equilibrium.  After that, the momentum traders (and their computer algorithms) kick in to send the price further down.  Once again, the kings of the east are thanking central planners for providing a cheap price.

In the meantime, the derivatives crisis is in full swing.  It has been estimated that as much as $300 Trillion in derivatives around the globe are worthless.  You can thank some major investment banks for providing such a dicey time ahead.  The individuals that led everyone down that path have received their bonuses and have attempted to insulate themselves from the fallout, and there WILL BE fallout.

Both April and June have the same “fingerprint”.

Destruction of wealth is in full swing.  However, long term I continue to expect the price of gold to shoot up in terms of purchasing power.

John WIlliams at www.shadowstats.com provides us with a comparative graph to show the reality of the U.S. Economy:

This picture confirms what I see in my daily life.  Restaurants are not as crowded, Walmart and Target are not as busy, and there are plenty of commercial properties that have been closed and now are up for sale.  When I was in New York recently I noticed that it was not as busy as previous trips to the “Big Apple”.  The Federal Reserve has injected huge amounts of money into the system and the above graph is the result.  They were able to keep the patient on life support but for how long?

With the latest whistle-blowing the U.S. has been caught with its hand in the cookie jar.  Further, officials who have lied to Congress have been exposed for all the world to judge… and it ain’t pretty.  They simply provided that crucial second witness needed for the BRICS countries to further decouple their economies away from the Dollar reserve currency.  Who wants to do business with someone of this nature?

Events are accelerating and that will lead toward volatility in the markets.  We must maintain our resolve and commitment to what Our Heavenly Father has shown us during these times.  Hearing HIS Voice is of critical importance.  During the coming transition we must continue to “beaver away” in what is connected to our individual callings.  Our gifts should be operating at 100%.  Let not the events cause you to be caught in a trance of indecision or inaction.  HE will guide you daily in preparation of coming events.  There is plenty to do in relation to your calling.  There is plenty to give up that has nothing to do with what the future holds.  I call these activities “time burners”.  Minimize those activities that seek only to distract you from your calling.  If in doubt, do nothing until you hear Our Heavenly Father provide direction.  It will be the best of times, or the worst of times, depending on whose voice you are listening to.  

Gold and silver are in the middle of another smackdown.  This may be the one to test notable lows.  Hopefully you are not leveraged up in this market.  This does not look too good.  The gold price was orchestrated downward by the central planners to remove most of us who  believe that gold and silver are the only “currencies” that can retain value over the long run.  The bullion banks who carry out the central planner’s mandate are not concerned about profits since they have somewhat of a guarantee over the long haul.  Unless utter destruction comes, they simply rollover their positions until they finally book a profit.  This can be achieved by trading dips with large sums of money and booking the profit.  You and I don’t have that privilege.

In the last five years the Fed has financially repressed the middle class and taken billions of dollars in interest income away.  I see nobody paying for that infamous deed.  Now, the Fed must deal with rising interest rates and this is where it will get ugly.  It is estimated that there are $441 Trillion in interest rate derivatives.  When rates go up there will be substantial losses and margin calls.  “Gamblers” will have to come up with cash to cover their margin call requirements.  They will even sell Grandma’s jewelry if necessary.  They will sell anything of value to raise cash, including gold and silver.  In the short term, this will cause a cascading drop of all asset prices.  It will be the unwinding of the “Wealth Effect”.  If the contraction of cash gains momentum, it will shrink spending thus shrink the economy.  The end result?  Possibly THE Depression.  Will it be the “Great, Great Depression”?  Only Our Heavenly Father knows.  Is this the time of Babylon falling?

The chart below shows the quick drop in the price of 10 Year US Treasury Bonds.  When the price goes down, the yield goes up and holders of the bond lose big money.  If they leveraged their position by borrowing money to hold these bonds, they get whacked… or as we say in cowboy country “jack-slapped”.

Notice how quickly the price fell.  In percentage terms that is a huge drop (and loss).  Be careful about investing.  There are perilous times for the small investor.  I will buy silver with the belief that its value will not go to zero.  I can’t say that about the U.S. Dollar though.

Early yesterday it was clear the markets were out of control.  China had issued a statement about the excess leverage in its banking system.  The world markets responded with substantial losses.  The Fed and Chinese stepped in and eased the concerns and the Dow Jones Average recouped earlier losses of the session.

The Chinese economy confirms its slowdown as well as Australia.  Emerging countries’ currencies are disconnecting.  Bond interest rates are rising.  UK salaries are continuing to fall.  Riots are affecting Brazil, Turkey and Sweden.  The Eurozone is still in recession.  The U.S. is still injecting $85 Billion per month to prop up markets. 
The Japanese Nikkei stock index has fallen more than 20% in three weeks during which there have been three sessions with losses exceeding 5%.

The Federal Reserve has had the view that if you can create the “wealth” effect, consumers will spend.  This was to be done by propping up the housing market and stock market.  What about those 23% who do not have a job and the impact on those who have to support them?  That drags down the desire to spend when you have family and friends needing assistance.

The U.S. real estate market is not in as good of shape as the media would have you believe.  Just look around.  There are houses on the market for sale as well as vacant houses not yet for sale as well as houses that should be foreclosed but the banks have stalled until the pipeline can handle more properties.  There are millions of distressed properties available.  Property values are notably down from the 2008 top.  Yes, some agri-land properties haven’t lost value but consumer residential properties in middle-class neighborhoods are the big issue.

A second crisis appears to be on the horizon.  We all need to be spiritually prepared.  The time frame is in Our Heavenly Father’s hands.  Will it be 2013?  I have no idea other than what Our Heavenly Father is having us do in preparation.  Our focus is on haring His Voice, simplifying our lives, and moving toward maturing in our understanding of the Truths in Scripture.  Our little Bible study is like a microcosm of the big picture.  First, we focus on HIS Character trait of Love.  Second, we are given the understanding of the Quantum versus Non-Quantum aspects of super-positioning, this being a protective aspect reserved for the “time of trouble”.  Third, the climatic maturing of the Remnant will begin in our study shortly.  Each day that passes gives each of us the opportunity to mature a little more.  Focus on being sensitive to HIS Voice.  Turn off the radio or TV and listen.  Clear your head of all the noise of the world.  Focus on what is important now!  The current system is heading towards a cliff and we must remain vigilant in our ongoing preparation toward the fullness of our individual callings.  The writing is on the wall.

There are simultaneous issues around the globe:

In China,  Their liquidity is under tremendous pressure.  “The shadow banking system is now at $2 trillion and 50% of debt is rolled over every 3 months, and 75% of China’s debt is rolled over every 3 to 6 months.”  This is very high leverage and credit has grown in China from $9 trillion to $23 trillion since 2008, over 200% of GDP.  Home prices are 16 to 18 times income.  In the U.S. prudent lending says 3 times income is the high-end parameter.  Credit creation is producing diminishing returns.  1 new Yuan of credit creates only .15 Yuan of GDP.  In 2008 that same credit created .85 Yuan of GDP.  China is in the midst of high inflation.

In Japan(3rd largest economy in the world), the Balance of Payments is collapsing as well as the personal savings rate.  The population is collapsing.  Population will go from 125 million to 90 million over the next 35 years.  There won’t be enough young people to support transfer payments to the old.  The bond markets are falling and will eventually collapse.  There is surging debt with all of the money printing.  Japan cannot afford rates now, but interest rates are headed higher anyway.  The result? A collapse of the Japanese yen.  The problems in Japan cannot be solved and will eventually lead to a problem for the rest of the globed.  This will lead to a huge global crisis.

In Europe, the Greek bond market plunging again and now the IMF is suggesting that they are going to pull the plug.  Germany is now finding itself under economic pressure and it cannot save the entire group of weak countries of Southern Europe.

In the US, if you adjust properly for inflation since 1973, the weekly wage has been reduced in half, a staggering 50% loss of purchasing power over 4 decades.  The food stamp usage is up to 50 million, and real unemployment is at 23% in the US according to shadowstats.com.

Last week, we saw the stock market respond negatively to Bernanke’s speech indicating that Quantitative Easing is nearing an end.  The market did not like that position.  Simultaneous to his speech, the gold price was slammed again in the same manner as the last attempt to convince the market that the U.S. Dollar was the place to be.  There was one huge trade during the off hours that sent the gold price off of the cliff.  No individual trader would make such a trade.

All of the above events point to highly volatile times ahead.  This roller coaster ride could be “heart-pounding”, “jaw-dropping”, and “heart-stopping”.  Get the defibrillator paddles out and be ready to yell “Clear”!