Archive for the ‘Biblical Economics & Money’ Category

Growth versus Decay

Thursday, January 31st, 2013

GOD is Love thus Love is constant and… infinite.  Other aspects of this physical life are in flux, either growth or decay.  We grow physically or we decay physically.  We grow spiritually or we decay spiritually and “grow cold”:

Matthew 24:12   And because lawlessness will abound, the love of many will grow cold.   NKJV

As we walk in Love we open the door for growth, blessing, and prosperity.  The Pentecostal age gave the “prosperity” message a bad reputation because Love was not at the center of its motive, lust was.  Lust was subtly disguised as bringing forth the Gospel and half-truths were used to justify the building of large ministries that tended to benefit a select group of entitled ministers while many of their donors were barely making ends meet.  Jesus did not operate in this manner.  Many of these ministries were exposed for their sin.  However, the Word of GOD is still powerful even when someone with sin in his life proclaims the Word.  Every Word of Our Heavenly Father has the power within itself to cause itself to come to pass.  Spiritual Laws work in spite of the delivery by lawless ones.  Rain falls on the unjust as well as the just.

Jesus promotes life, fruitfulness, and growth: 

John 10:10   The thief cometh not, but for to steal, and to kill, and to destroy: I am come that they might have life, and that they might have [it] more abundantly.  KJV

Many would limit this abundance to be spiritual only but Jesus never operated in scarcity in His ministry.  When He needed food, He multiplied it.  When He needed tax money, He located it.  When He saw a need, He supplied the need.  However, He was always motivated by Love.  He didn’t have to hoard resources during His ministry.  He made sure that the twelve disciples were fully supplied.  We read nowhere that the disciples were deprived during His ministry on earth.  His parables indicated that life and blessing were associated with those who pursued the fullness of a relationship with Our Heavenly Father.  Fruitfulness is the mandate of the overcomers, not scarcity.  The “double fruitfulness” type and shadow of Ephraim as an overcomer denotes blessing.

Abuse and misuse of Biblical truths do not negate the life in them.  We must change our thinking, clear the slate, and build upon the foundation of Love.  As our intent becomes Love-based, we are now ready to produce a hundredfold return of fruitfulness.  The fruitfulness will be in the spiritual realm but the physical realm will be aligned as well for it must submit to the spiritual.  We should believe that it is Our Heavenly Father’s good pleasure to bless us rather than force us to live a life of lack and scarcity in order to pass some perpetual test of commitment.  Yes, there will be times of testing of our faith, but not forever.

Are you in growth mode or decay mode?  If you are in decay, persistent scarcity, or lack, you may want to reassess your priorities.  A foundation of Love is the highest priority.

Iceland Update

Tuesday, January 29th, 2013

There is life after Mystery Babylon:

35 Reasons to be concerned

Thursday, January 24th, 2013

The following list is from http://theeconomiccollapseblog.com/archives/do-you-want-to-scare-a-baby-boomer

I have seen many of these statistics from other sources.  What amazes me is the slack attitude of many baby boomers.  Self-indulgence is at the center of their attitudes.  These are the same people who allowed “government sanctioned” lawlessness to become part of the American culture on their watch.  The Supreme Law comes from Our Heavenly Father.  Any law that is contrary is lawlessness, pure and simple.  The weight of the subsidies needed to support them is greater than the ability of the rest of the working population to generate income.  Something has to give.

 

1. Right now, there are somewhere around 40 million senior citizens in the United States.  By 2050 that number is projected to skyrocket to 89 million.

2. According to one recent poll, 25 percent of all Americans in the 46 to 64-year-old age bracket have no retirement savings at all.

3. 26 percent of all Americans in the 46 to 64-year-old age bracket have no personal savings whatsoever.

4. One survey that covered all American workers found that 46 percent of them have less than $10,000 saved for retirement.

5. According to a survey conducted by the Employee Benefit Research Institute, "60 percent of American workers said the total value of their savings and investments is less than $25,000".

6. A Pew Research survey found that half of all Baby Boomers say that their household financial situations have deteriorated over the past year.

7. 67 percent of all American workers believe that they "are a little or a lot behind schedule on saving for retirement".

8. Today, one out of every six elderly Americans lives below the federal poverty line.

9. More elderly Americans than ever are finding that they must continue working once they reach their retirement years.  Between 1985 and 2010, the percentage of Americans in the 65 to 69-year-old age bracket that were still working increased from 18 percent to 32 percent.

10. Back in 1991, half of all American workers planned to retire before they reached the age of 65.  Today, that number has declined to 23 percent.

11. According to one recent survey, 70 percent of all American workers expect to continue working once they are "retired".

12. According to a poll conducted by AARP, 40 percent of all Baby Boomers plan to work "until they drop".

13. A poll conducted by CESI Debt Solutions found that 56 percent of American retirees still had outstanding debts when they retired.

14. Elderly Americans tend to carry much higher balances on their credit cards than younger Americans do.  The following is from a recent CNBC article

New research from the AARP also shows that those ages 50 and over are carrying higher balances on their credit cards — $8,278 in 2012 compared to $6,258 for the under-50 population.

15. A study by a law professor at the University of Michigan found that Americans that are 55 years of age or older now account for 20 percent of all bankruptcies in the United States.  Back in 2001, they only accounted for 12 percent of all bankruptcies.

16. Between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.

17. What is causing most of these bankruptcies among the elderly?  The number one cause is medical bills.  According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States.  Of those bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that actually did have health insurance.

18. In 1945, there were 42 workers for every retiree receiving Social Security benefits.  Today, that number has fallen to 2.5 workers, and if you eliminate all government workers, that leaves only 1.6 private sector workers for every retiree receiving Social Security benefits.

19. Millions of elderly Americans these days are finding it very difficult to survive on just a Social Security check.  The truth is that most Social Security checks simply are not that large.  The following comes directly from the Social Security Administration website

The average monthly Social Security benefit for a retired worker was about $1,230 at the beginning of 2012. This amount changes monthly based upon the total amount of all benefits paid and the total number of people receiving benefits.

Could you live on about 300 dollars a week?

20. Social Security benefits are not going to stretch as far in future years.  The following is from an article on the AARP website

Social Security benefits won’t go as far, either. In 2002, benefits replaced 39 percent of the average retirees salary, and that will decline to 28 percent in 2030, when the youngest boomers reach full retirement age, according to the Center for Retirement Research at Boston College.

21. In the United States today, more than 61 million Americans receive some form of Social Security benefits.  By 2035, that number is projected to soar to a whopping 91 million.

22. Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

23. As I wrote about in a previous article, the number of Americans on Medicare is expected to grow from 50.7 million in 2012 to 73.2 million in 2025.

24. Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately $328,404 for each and every household in the United States.

25. Today, only 10 percent of private companies in the U.S. provide guaranteed lifelong pensions for their employees.

26. Verizon’s pension plan is underfunded by 3.4 billion dollars.

27. In California, the Orange County Employees Retirement System is estimated to have a 10 billion dollar unfunded pension liability.

28. The state of Illinois has accumulated unfunded pension liabilities of more than 77 billion dollars.

29. Pension consultant Girard Miller told California’s Little Hoover Commission that state and local government bodies in the state of California have 325 billion dollars in combined unfunded pension liabilities.

30. According to Northwestern University Professor John Rauh, the latest estimate of the total amount of unfunded pension and healthcare obligations for retirees that state and local governments across the United States have accumulated is 4.4 trillion dollars.

31. In 2010, 28 percent of all American workers with a 401(k) had taken money out of it at some point.

32. Back in 2004, American workers were taking about 30 billion dollars in early withdrawals out of their 401(k) accounts every single year. Right now, American workers are pulling about 70 billion dollars in early withdrawals out of their 401(k) accounts every single year.

33. Today, 49 percent of all American workers are not covered by an employment-based pension plan at all.

34. According to a recent survey conducted by Americans for Secure Retirement, 88 percent of all Americans are worried about "maintaining a comfortable standard of living in retirement".

35. A study conducted by Boston College’s Center for Retirement Research found that American workers are $6.6 trillion short of what they need to retire comfortably.

Battle between the East and the West

Thursday, January 24th, 2013

The Chinese are developing a gold-backed currency using the Yuan.  They continue to purchase gold as quietly as possible.  They are using some of their U.S. Dollars to convert to gold, a store of value without any attached liability.  Last year China imported at least 1,000 tons of gold and they are not divulging size of their stockpile… yet.

They are quickly developing their financial market to handle world-class transactions, circumventing the U.S. Dollar.  The U.S. Dollar as the world’s reserve currency is soon to be challenged.  The unfunded liabilities of the U.S. assure us that the U.S. Dollar will continue its decline in value.  America no longer has the resolve to deal with huge problems in its financial house.

Once the market responds to this plan, I expect gold and silver to respond accordingly based on the basic economic law of supply and demand, and enter their next phase of the bull market.  The central banks have intervened in the paper market to suppress the rise of these metals.  However, the market is larger than the central banks and their manipulation has an end in sight.

Will the U.S. be energy independent?

Monday, January 21st, 2013

Not with shale oil.  I have been discussing the economics of shale drilling with a friend of mine who is a geologist.  We both agreed that the cost of drilling those horizontal wells versus the expected output and decline did not make sense.  Just as the Internet bubble could not last, just as the housing bubble could not last, the shale play will not last either.

To better understand the reality, read the following article:  http://www.businessinsider.com/arthur-berman-shale-is-magical-thinking-2013-1?op=1

$6.9 trillion deficit in 2012

Friday, January 18th, 2013

John Williams’ Shadowstats.com reports today:

“Based on generally-accepted-accounting principles—or GAAP-based accounting—the 2012 consolidated financial statements of the United States Government showed a $6.9 trillion deficit for fiscal 2012, up from $4.6 trillion in 2011.”

I recommend a subscription to his service.  It saves the rest of us time in wading through government statistics and their interpretation.  You won’t find the mainstream media (MSM) making an issue of this.

The Trillion Dollar Coin

Friday, January 18th, 2013

In an attempt to circumvent the debt ceiling issue, the Administration passed an idea by the public to see the reaction- create a $1,000,000,000,000 coin and deposit it with the Federal Reserve Bank thus creating money in one simple act.  Clearly, it did not fly.  History will ask the question “What were these guys thinking?”  The sad reality is that the American public has degraded to the point where an attempt of this nature could even be contemplated.  My oh my.

The following is an excellent concise article about this latest attempt:

http://finance.yahoo.com/blogs/the-exchange/treasury-already-minted-two-trillion-dollar-coins-005206800.html

Tapping into Pension Fund to get around debt ceiling

Thursday, January 17th, 2013

“Geithner says gov’t will borrow from federal employee pension fund to avoid passing debt limit”

OK, let’s see how this issue progresses:

Step 1  Replace all Social Security funds with U.S. Government IOU’s

Step 2  Replace all Government Pension Funds with U.S. Government IOU’s

Step 3  Replace all 401K Funds with U.S. Government IOU’s

Step 4  Replace all IRA Funds with U.S. Government IOU’s

Problem solved!

See:

http://www.washingtonpost.com/politics/congress/geithner-says-govt-will-borrow-from-federal-employee-pension-fund-to-avoid-passing-debt-limit/2013/01/15/b58d6470-5f59-11e2-9dc9-bca76dd777b8_story.html

Currency War on the horizon

Thursday, January 17th, 2013

Countries are starting to get desperate.  The good ole’ times are over.  The debt-based system is teetering now and it is every man for himself.  Germany’s demand for its gold (over a 7 year period) is just another example of Central Banks beginning to align themselves for a currency conflict.  The American attitude of entitlement will soon be challenged.  The U.S. Dollar as the world reserve currency is being challenged by the Kings of the East.  I expect gold to be the beneficiary and silver to be dragged up the price scale with it.  This trillion dollar coin is just the latest laughable attempt to “fix” the problem of massive debt.  That must be quite a coin!

Russia is also commenting on the upcoming skirmishes: http://www.bloomberg.com/news/2013-01-16/russia-says-world-is-nearing-currency-war-as-europe-joins.html

Only the Kingdom-based economy can solve the global economic issues.  Only the wisdom from Above can steer us through the turmoil on the horizon.  Our leaders need to be reciting The Lord’s Prayer… and believe it!

Germany is expected to repatriate Gold

Wednesday, January 16th, 2013

The following article supports the numerous blogs I have written in the past about the importance of gold & silver as insurance against economic calamity:

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9804444/Bundesbank-to-pull-gold-from-New-York-and-Paris-in-watershed-moment.html

I guess the Germans are getting a little concerned as well