Servias Ministries Blog

In the big picture, the central planners are still trying to keep the wheels on the wagon as is goes down the mountain of debt and derivatives with huge boulders in the way.  There is no way to navigate past all of the obstacles and safely make it back to normality in the financial markets.  Our parents were given 5 decades of rather reliable economic times in the West.  That reliability is gone.  Greed has been raising its ugly head for the last 30 years and the politicians on both sides of the aisle have accommodated  big business in changing laws to exploit the weak and helpless in all aspects of the current system.  Antitrust legislation has been gutted, financial institutions have removed any barrier that would prevent them from gambling with depositor money, and in the name of technological advancement, the population has been convinced that electronic money is superior to physical money.  Nothing could be further from the truth.

Once you remove the physical characteristics of money, you have complete central control of all money.  The individual becomes servant to the system.  You can no longer make your own decisions without potential intervention.  The value of your stored wealth can be manipulated with one keystroke and there is nothing you can do about it.  What are we to do?

Debasement of currency value can be offset by investing in real value.  Owning a physical asset offsets the attempts to control your stored wealth by electronic keystrokes.  There is likely a Black Swan event coming.  There is no way that central planners can perfectly execute a plan without flaw.  That unforeseen flaw will cause the tide to turn dramatically and when it does the entire financial system will be turned upside down.  All the wheels on the proverbial wagon will come off simultaneously.

The Fed will not reduce Quantitative Easing (aka money printing) before the Christmas season.  Thee is too much to lose.  But after Christmas, they will attempt to slow down the money printing efforts and that will backfire.  Once the market perceives the issue, gold and silver will make a dramatic move upward and other physical assets in demand will do the same.  In the meantime, I am still prepared for gold and silver to be slammed again.  If so, many of us will be buyers.  If silver goes below $20 and the related silver producer stock hit 52 week lows, I hope to have some cash to add to my current positions.  The same for gold going below $1,300.  The precious metals are the enemy of central planners in the West.  They will try to dissuade investment in gold and silver with any means possible.  Their marketing,advertising campaign attempting to slam precious metal investing is no longer working.  Savvy investors are just buying the metals at bargain prices.

John Williams at www.shadowstats.com continues to see the setup for hyper-inflation.  He may sound like a broken record, but he remains firm in his belief that we are nearly at the point of this extreme event.  His latest comments:

Market Instabilities Suggestive of Nearing, Hyperinflation End Game

Monthly Retail Sales Gain Was Statistically Insignificant; Recession Signal Intact

Consumer Liquidity Remains Heavily Impaired

The consumer has no money to bring the economy into recovery, the double-dip recession is at hand, and hyper-inflation is close.  If there is ever a time to focus on hearing Our Heavenly Father’s voice, it is now.  HE has the only answer to the failing, complex environment man has created.  Don’t be a victim to the current system.

“When you don’t know what’s happening in the market, don’t do anything, because anything you do might turn out to be stupid.  If you’re an amateur watching a poker game being played by professional gamblers, just keep watching.  You’ll probably be better off watching the game than joining the game.”

A beloved brother from “Down Under” wrote me an encouraging email about our online Bible study yesterday:

Hi Bob,
Simply to say I am in "full absorption mode" with Dr. Speckhart because there is so much to absorb. It is incredibly believable and clears away some "unknowns" till now; so you may choose to tell him there is one dedicated listener here Down Under, albeit stunningly muted! What else!!!
My wife is persevering with interest and my son is picking up on points here and there but definitely all positive and in belief that Vince has a God guided path to the verge of the universe to glimpse beyond the Quantum, in preparation for the trials of the future as this Quantum world of Babylon yields to His authority of "Love".
We are soon to watch this Sunday’s ustream broadcast which is the one without Vince and eagerly await the reflection across all that he has said.
We are often delayed in watching your Sunday sessions because we endeavour to get together, clear in thought as possible, to absorb and discuss what we can. When you suggest we may get "one thing" from this discussion being worth while; it is likely, given time, we will have considerable transformation in our understanding once we have absorbed much of what he has written. Vince will have a "time delay" action in my life like no other but I must remain patient.
Pressing the boundaries is an invigorating experience and we look forward to his return.
The ustream broadcast is fully effective and without corruption now.
Thanks for your sterling efforts.
Love and Blessings

“Pressing the Boundaries” sums it up.  After we finish the broadcast, we continue with post-broadcast discussion, sometimes as long as an hour.  Kemper’s working definition of Wisdom- “Hearing with the willingness to receive correction” is appropriate when absorbing a new revelation such as the  “non-quantum”.  Our friends Rose & Roy have a 40 year history with Pam and myself.  We met in the Assembly of God church and  we all went to two other churches as families from 1973 to 1996.  There were greater revelations to hear, receive, and embrace.  Along the way it was important to hear everything and discern what were truths from Heaven and what were opinions from man.  We could then judge the fruit and see what came from Our Heavenly Father.  Our doctrines were changed, torn down,, built up.  Some sacred cows had to be removed.  This is all necessary in becoming one of the “Amen” Remnant.  In the end, we must seek the Truth.  Truth comes by revelation, not by the number of books you have read, not by the some diploma issued by man’s institution.  Training has its place.  Study has its place.  But a revelation from Our Heavenly Father disclosing a higher truth provides a peace and satisfaction far superior than that contained in a book.  The prophets of old did not have the Internet, or smart phones, or public libraries.  Their attention was not diverted by electronic “time burners”.  There was plenty of time for pondering and reflection.

We will continue to press the boundaries because Our Heavenly Father’s thoughts are higher than our thoughts and we want to ascend in Love, not passively be drawn to the outer darkness.  Let nothing dissuade us from being one with Our Heavenly Father!  And they all said “AMEN”.

It has been said that “Paper money hides the truth”.  Unfortunately I agree.  Paper money starts out as a convenience and is backed by gold.  Then the central planners want to pump up the economy and bypass the normal contraction portion of the economic cycle.  Interrupting this natural rhythm begins the path to destruction of the currency.  We are in the midst of observing this destruction play out during our lifetimes. 

“The increase we have seen in paper wealth is illusory both for individuals and for the world.  But it suits the governments to fool their people.  This gives them the best chance of being reelected and they also engage in theft through inflation.“  The U.S. Government is now under fire for its widespread use of monitoring telephone calls and emails of the entire population.  What is the justification?  Hidden agendas of those in charge will only be tolerated for so long by the masses whether it be manipulation of wealth or compromising civil liberties and basic rights.  No matter how you look at it, we are heading for a major change.

The biggest personal challenge most of us have is the fact that we lived through a rather reliable time in history in the Western World.  Several decades of stability have left us without any comparison to how drastic change can be.  Unlike other countries who have had major upheavals, the Western Nations have been somewhat stable since WWII and most of that generation is now gone.  They can no longer warn us of the alternatives.  The fact is we think we are smarter than the previous generation but only destined to repeat the same mistakes again.

The Silver to Gold ratio has been 16 to 1 for most of history.  Today it is 62 to 1.  Since gold is in record demand which supports its current price (and higher prices), I believe silver is positioned to make a dramatic move upward.  At the current gold price, silver should be $88 per ounce to bring it back in line, nearly a fourfold increase in price.

The question we must all ask ourselves:  Which will go to zero value first- fiat currency or gold & silver?

The various agencies around the world are all looking at depositors’ money as a source of bank recapitalization.  They would simply take a portion of depositor funds and issue bank stock… moving money from the liability category (Demand Deposits) to the equity category (bank stock).  It would be done on a Friday thus depositors would be unaware of the severity of the problem until their funds were safe from withdrawal.

Can they do that?  Sure.  Can they hold your money and only release a small portion as they see fit?  Of course.  When you signed a signature card, you executed a contract with the bank.  Generally, they allow you to withdraw at your convenience but they are not required to release your money immediately.  The laws have always favored banks and other financial institutions to the detriment of the individual depositor.

What if I have less than $250,000 in the bank?  Am I safe?  Maybe.  Do you have a retirement account or pension?  If so, the entity holding your retirement definitely has more than $250,000 in the bank so you are at risk in a secondary fashion.

These are perilous times for investing.  Governments are printing more money and reducing the value of our demand deposits in the bank.  Now we have to be concerned about possible confiscation of part of our funds.

Place your trust in Our Heavenly Father for HIS Word is sure!

The recent drop in the price of gold was called a “six sigma event”.  A six sigma event is characterized by a price drop of six times the volatility (or standard deviations) of the asset , thus the name six-sigma, sigma being the Greek letter representing volatility.

This event has at its roots desperation.  At some point we will reach a climax in the currency wars and all of those currently in power will promote extreme measures.  What will those measures be?  Most statements will start out “For the greater good” which translates “We want to stay in power and in order to do that…”.  The decision of the population will be made as a result of the Spiritual Warfare that has been conducted on behalf of mankind.  In the end, Love will prevail.

We must look at the biggest of pictures to keep our perspective.  The latest attempt at a pure fiat currency system began 42 years ago by Richard Nixon.  At that time, he was desperately attempting to withstand the forces causing the U.S. to lose economic power.  The International balance of payments were in disequilibrium and France wanted to settle in gold, not U.S. Dollars.  Ever since then, any attempt by a Sovereign to force settlement in gold has been met with extreme resistance, even war.  Once you lose your economic dominance, you must rely on your military until there is such a global resistance, your military becomes spread to thin or you simply run out of money to fund such an outreach.

Richard Nixon’s closing of the gold window was an unrighteous act.  As the leader of a nation, his unrighteous act had a negative impact on the Spiritual condition of the U.S.  Of course he is not the only leader to bring forth judgment.  He is joined by a long list.  None of those unrighteous acts are overlooked by the Heavenly Court.  The day of reckoning will occur and we should not be caught unaware of the national judgment.  Indeed, all the nations will be judged for their unrighteous acts.  Our Heavenly Father will grant mercy of those within the borders of the country being judged, but nonetheless judgment must come.  When it does, it may be called a “Seven” sigma event, one of Spiritual Perfection.

Japan is a disaster: astronomical debt and zero interest rates.  They may not survive  in the current system. 

Europe:  Spain, Portugal, Italy, Greece, France, the UK are all virtually bankrupt economies.

USA:  The biggest debtor in the world and can never repay its debt.  The Fed’s balance sheet has gone from $800 billion in 2008 when the crisis started, to $3.2 trillion now.  The Fed’s balance sheet is growing exponentially.  They are now buying 75% of all new Treasury issuances.  The purchases may go to 100%. 

Globally:  Liquidity injections (since 2008) are roughly $20 trillion with no effect whatsoever on the real economy.  These injections have only helped banks and created bubbles in stocks, bonds, and property markets.  Total world debt (excluding unfunded liabilities) is about $250 trillion with at least 1/3 is possibly bad debt, roughly equivalent to the world GDP ($70 Trillion).

Can the world repay $70 trillion of bad debt with real money? 

Global Derivatives: more than one quadrillion dollars, much is worthless. 

The month of May:  15 central banks lowered interest rates thus competing to debase their currencies.  James Rickards wrote on this in his book “Currency Wars: The Making of the Next Global Crisis”.

Collapsing currencies worldwide will bring forth hyperinflation. 

Gold will ultimately respond and maintain its purchasing power.  Relative to paper money, the gold price is likely to have several zeros after it in coming years.

The Physical Gold Market.  The LBMA (London Bullion Market Association) reported record gold transactions in April, of +25%, the highest level since gold peaked in September of 2011. Physical trading is at the same level where it was when gold was at its peak at $1,900. 

And this is just a simple review.

As a former Chief Financial Officer (CFO), I can tell you that corporate spending decisions are highly effected by the cost of money.  Decisions to build, expand, etc. are all about return on investment.  Why do you think Corporate America has moved all of its manufacturing offshore?  It’s all about the bottom line.  The average worker or the future of American infrastructure does not matter.  It is every man for himself and that is the crux of the problem of the current macroeconomic model.

The current system is based on greed and self-interest and is identified historically by its boom and bust cycles.  Fear and greed play their role in moving up and down the economic cycle.  The stock market reflects this reality.  Central planners play with the cycle, sometimes extending some aspect of it, but in the end the cycle continues its roller coaster ride.

Germany has thrown in the austerity towel and is now in the money printing business as well.  They see no other way but to join in with the other countries.  Their self-interest necessitates the change in policy.  Why make their citizens suffer when other countries won’t go down the road of austerity to correct the overall problem.

Ben Bernanke’s bet on low interest rates will ultimately backfire.  Do you really think that a handful of intellectuals can accurately assess the complexity of the global economic system?  Only Our Heavenly Father has the capacity to properly guide people through a righteous and equitable path to prosperity.  Time and time again, history proves this to be correct.

Zero interest rates do work in a righteous economy.  Scripture tells us to not charge usury to our brothers and sisters but the current motivation isn’t Biblical-based economics.  The unrighteousness in the current system only serves to further the problem.  Greed perpetuates the current direction and the central planners will throw anyone under the bus who gets in their way.  They use terms such as “greater good” and “you don’t understand” as they rationalize their new economic theories.

Gold and silver will ultimately migrate their way to new highs.  The dam of resistance will at some point give way to the true market price of these two precious metals.  You can’t use one Biblical principle (zero interest rate) and expect unrighteous acts to sustain themselves indefinitely.  Our Heavenly Father does not look the other way simply ignoring the bigger issue of greed.  The Heavenly Court will ultimately rule in favor of righteousness.  Those who are called to Spiritual Warfare will lead the way for a Heavenly ruling to come down in favor of the righteous.  Judgment will be assessed on the current system and the day of reckoning will come forth.  Until this day comes forth, we must remain vigilant and continue pressing in and aligning ourselves with the righteousness and character of Our Heavenly Father.  Yes, we will  have some setbacks but overall we will move toward full maturity.  We must not become complacent and accept the current system as being permanent.  The problems are there no matter how much the central planners try to cover them up with half truths, manipulated rates, or managed reports of false recovery.  Our Heavenly Father will give us plenty of time to reach maturity but when the day of reckoning arrives, judgment will come in full force on the current system and there will be no refuge for the lies anymore.

Saudi Arabia’s King Abdullah clinically dead: Report says

See:  http://www.presstv.ir/detail/2013/05/26/305584/saudi-arabias-king-clinically-dead/

The Federal Reserve has added yet another bubble to the current list of bubbles:  the Current Assumption Bubble.  This one is based on several other bubbles staying inflated.  Let me explain.  Historically, a corporate financial officer needed about a 15% return on investment (ROI) to agree to a capital expenditure.  This ROI had underlying assumptions of revenue flows, cost of money (interest rates), future cost of materials, etc.  Now enters the Fed who manipulates the cost of money, props up the revenue flows, and inflates the cost of materials.  The CFO is now basing his decision on assumptions that have been manipulated by the Fed.  Once the Fed quits stimulating the economy, the current decision is no longer valid.  If the assumptions change rapidly then the CFO not only scraps the project but then moves into a full defensive posture and shrinks all cash outflow to cover the costs of the bad decision.  By extending the Quantitative Easing (in its fifth year), the business cycle has been totally distorted.

This is true for individuals as well.  As we are lulled into believing all is okay, there awaits a day of reckoning.  My goal is not to induce fear but to warn of potential harm that may come to the brethren if we do not remain vigilant.  The financial institutions managed to virtually eliminate the jubilee of bankruptcy of individuals in the U.S.  Why did they do this?  The saw what was coming and wanted to protect their interests by changing the laws to hurt the average borrower.  This change in the law resulted in further enslavement of the masses to the financial institutions.  Could this be one of the reasons for an overall increase in the suicide rate versus the Great Depression?

People continue to feel the pinch of the current economic environment while being told that the nation is in a recovery.  The numbers don’t confirm the recovery.  Live simpler, be careful of additional debt, and ask Our Heavenly Father for guidance in your expenditures.