Servias Ministries Blog

I believe that coordinated central bank actions in the USA, EU, Japan and China may occur soon. The global economic problems are severe and are now linked on an international, global basis.  This coordinated global action will attempt to kick this can down the road one more time.  China’s European exports are down 25% and other countries such as the U.S. are down as well.  The excess of the 90’s has filled up the houses of baby boomers with trinkets and big boy toys.  Baby boomers are starting to focus on retaining value for their retirement now.  Hoarding will replace the spending of the last twenty years.  Abortion has reduced the next generation by over 25 million so their is a void on consumers to take up the slack.  Japan has been in a two decade funk.

Tangent Capital Senior Managing Director Jim Rickards discusses the S&P 500 priced in ounces of gold.  I believe this graph provides a more realistic view of what is happening to value for the average citizen.  Gold continues to be the canary in the coal mine and central bankers have spent a lot of resource attempting to manipulate the price of gold downward, never upward.  Why?  True money reveals the fallacy of the current prevailing economic thought.

Watch: http://www.bloomberg.com/video/this-is-your-s-p-500-on-inflation-Y8IWXJ4jQmS~XNcbrSVshw.html

Laurence Kotlikoff of Boston University in a recent speech calculated that the total debt (including unfunded liabilities) of the U.S. is currently at $222 Trillion.  Politicians are well aware of “off balance sheet” liabilities that have been hidden from the public.  If would be like omitting your home mortgage off of your balance sheet so that you appear to have more wealth and less cash requirements.  This is a very dangerous scenario to the American people as well as the rest of the world.  The last six decades of an off-balance-sheet, unsustainable financing scheme have left the U.S. insolvent.

One of the toughest realities to deal with is financing leverage.  When an individual buys a new car on a 72 month loan but wears the car out before the 72 months are up he is now paying for something of little or no value.  When you owe more than the current value of the asset, it gets ugly.  When a country has leveraged its future based on false assumptions, it will also get ugly.

It really got started with the baby boomer generation.  When the boomers entered the workforce social security was created to fund the elderly and to be paid for by the young boomers.  What those in power did not count on was the increased life span of the elderly and the reduction in births after the boomers.  Talk about a perfect storm, legalized abortion removed population from the future workforce and pharmaceuticals helped doctors increase the lifespan of the elderly even though healthcare costs based on symptom treatment would skyrocket.

Do you think I want to give up my Social Security checks after being forced to contribute for the past 45 years?  No way!  Do you think I should pay for the guilty who knew this day of reckoning was on the horizon?  Absolutely not!  As a small businessman, I actually paid twice as much as the average worker since my little company had to match the employee contribution to Social Security and Medicare.  The large population of baby boomers all feel the same way.

Is there a solution?  The only solution of the current economic system is to print money and use inflation to pay off the debt with dollars worth much less than today’s value.  In fact, that has been happening for some time now.  Remember when a Coke was nickel?  Now you pay twenty times the amount for the same product.

The issue revolves around value.  Hard assets have true, tangible value.  Paper assets have relative value.  When the day of reckoning arrives, paper assets will be devalued to extreme levels.  An economic collapse could cause paper assets to become worthless.  Tangible assets would take a hit as well since the demand for those assets would be dramatically affected.  However once the smoke cleared the tangible assets would migrate to their intrinsic value.  I believe the gold/silver ratio would return back to 16 ounces of silver equal 1 ounce of gold.

The backers of the U.S. Dollar as the global reserve currency are quickly approaching a storm of epic proportion.  The only question is what day will the “Black Swan” arrive.  Before arrival of that day, I believe that Our Heavenly Father will have a network in place to fill the vacuum.  The ongoing moral decline of the global system can only be replaced with a righteous alternative.  Mothers will be crying in their pillows at night asking “How did this happen?”.  Men’s hearts will fail once they have realized their blindness in the financial decisions and direction they took.  In desperation men will repent and look for answers.  Our Heavenly Father will respond as a Father who loves His children but will evoke a lesson to insure they learn from the lawless acts before restoration can be completed.

China is now looking at a $1.250 Trillion stimulus package for it provinces.  Why?  The West is not buying what it used to.  Once you create growth by money printing, you are locked in unless you can get the global population to increase its consumption.  With the aging population in the West looking toward retirement and reduced spending the West does not have the consumption levels it did when baby boomers had to have every toy imaginable.

Will the banking greed in Europe get funded on September 12th when the German Court decides if Germans can fund quantitative easing?  Iceland took the other path, threw out the bankers, and survived.  Would Europe dare to do the same thing?  I doubt it.  All of this bodes well for gold and silver.  The following interview provides a respected technician’s view of gold’s future:

Those in power have been managing retreat against the price of gold and silver.  The following chart provides some perspective:

The macroeconomic environment supports further gold price increases.  China is buying gold, Russia is buying gold, as well as others.  Yet in the U.S. the average investor does not own gold or gold shares.  What would happen is American investors suddenly understood the macro picture?

Our Heavenly Father is of course sovereign over all the earth.  Historically the ratio of gold to silver has been 16 to 1.  It is a Love ratio.  Gold (Divine Nature) and silver (redemption) has a transition ratio of Love (16).  Has the key to the transition from redemption to Divine Nature (glorification) been broadcasted in the economic markets?  I think so.

The current gold/silver ratio is 53/1.  If gold remained at its current level and silver returned to the Love ratio then the price of silver would hit $104.  The current ratio would suggest manipulation by men.  Can men manipulate the long-term plan of Our Heavenly Father?  It looks like economic judgment is coming against the lawless ones.

I am fascinated by the political battle for the presidency this year.  The polarizing quotient seems greater than the past.  This week the Republican Party has announced that it is considering a gold standard.  Have they been reading my blog over the last five years?  Romney says that Bernanke must go.  Will Bernanke ramp up quantitative easing even more in order to keep the incumbent in office?  This election is focused on the economy… finally.  Servias Ministries has no political interest in the outcome of the election for we believe that Our Heavenly Father will enact HIS Plan either way.  The lawless attitude of the population has slowly manifested itself to full maturity.  Fraud is now a badge of honor on Wall Street.  The love of money (greed) has reached a zenith among the hearts of the populace.  The current system will not be allowed to sustain itself much longer.  How much longer?  Only Our Heavenly Father knows that detail.  We have been warned countless times over the years.  This has enabled those who have heeded the call to prepare themselves for this eventuality.

John Williams of Shadowstats.com in his latest update wrote:

“The long-term fiscal solvency issues of the United States—where GAAP-based accounting shows annual deficits running in the $5 trillion range—are not being addressed, and the politicians currently running the government lack the political will to address those issues.  That circumstance initially suggested a hyperinflation crisis by the end of this decade, but federal government and Federal Reserve actions—in response to the systemic-solvency crisis of 2008—accelerated the process, indicating a hyperinflation problem by no later than the end of 2014.  The continuing economic downturn is intensifying the fiscal- and systemic-solvency problems, and public awareness of this should grow rapidly in the months ahead.”

The issue is blindness among the people.  And who is it that initiates blindness?  Our Heavenly Father!  When we habitually sin, there are repercussions.  We lose sight of righteousness and slowly begin to think we are doing what is right in our own eyes.  Until we have a corrective interview by Our Heavenly Father, we will proceed down the path of destruction.  I know I have been a recipient of one of those corrective interviews in the past.

Creating money out of thin air is lawless.  It depreciates the existing store of value and thus robs the holders of existing money of value they earned.  We are warned in Scripture about using unequal weights and measures.  Social Security check increases are based on the change to Consumer Price Index (CPI). It has been tinkered with by statisticians to underreport increases.  The net effect is that seniors have less purchasing power to survive on.  This lawless mentality goes against everything Love stands for.  It exploits the weak and lines the pockets of the rich and powerful.  Widows suffer and are forced to sit on the couch all day trying to minimize expenses.  This system is so broken that the only solution would be to wipe the slate clean.

We are heading off the fiscal cliff.  However we must trust that Our Heavenly Father has allowed this to happen and has HIS Plan in place to restore righteousness to the earth.  Our hope and expectation is that a group of Overcomers has been prepared for such a time as this.  I believe unity153.net is integral to the plan.  It may simply be a bridge until all those who are called have received glorified bodies and no longer need a “network” in place.  I only know and do what Our Heavenly Father says to do.  Many are called but few are chosen.  Hearing and responding moves you to the “chosen” group.

If you own securities in a brokerage account and want to eliminate the “middleman” between you and your ownership, you can directly register your stock.  For instance,  let’s say you have a Scottrade account and you own 100 shares of Goldcorp.  You can ask Scottrade to directly register your shares with the stock transfer agent.  This takes your stock out of Scottrade’s “street name” and places the stock directly in your name with the stock transfer agent.  Your broker then has no ability to collateralize your stock for any investments it might make itself.  Recent court decisions have put client assets at risk.  If you have notable value in your stock account and plan to hold the stock for the longer term, DRS may be a solution.

See:  http://www.reuters.com/article/2012/08/10/us-sentinel-appeals-decision-idUSBRE87900T20120810

PS:  I have not moved my self-directed retirement accounts.  I believe that the courts would not currently stoop to allow these accounts to be at risk as well.  Who knows?

For those interested in attending an Internet Conference this weekend, I will be speaking live from my office at the center of the universe- Bethany.  I will start at 2PM Eastern, 1PM Central Time.  They have allowed two hours but I don’t think that I will need near the time slice.  If you want to attend via the Internet, follow the instructions contained in http://www.gods-kingdom-ministries.org/weblog/WebPosting.cfm?LogID=3497

I will be talking about Unity153, Servias Ministries, Biblical Economics, EDS, and of course….. Love.  This is an excellent venue since I don’t have to hop on a plane and travel to Canada,  eh!

On September 12th, the German High Court will decide whether the European Stability Mechanism (ESM) is unconstitutional to German Law.  ESM would transfer German sovereignty to the EU in Brussels.  This decision will have huge implications.  If the High Court decides that the ESM is unconstitutional, the Euro could collapse in weeks.  However, if the Court agrees with the ESM the path is cleared for a European Central Bank to function just like the Federal Reserve Bank.

If you want to track economic activity, you can look at shipping demand.  Pallet manufacturing in the U.S. used to be a primary indicator of economic health.  As distributors ordered more goods from manufacturers, new pallets of goods would be loaded into tractor trailers for shipment.  When the pallet manufacturing went down, you could expect a slowdown in shipments.

As the global manufacturing model became more predominant, the shipping container traffic provided a better view of economic health.  International shippers are in trouble.  Margins are at bare bones levels.  Banks no longer want to finance ships.  Demand out of the U.S. is down 7%.  The oldest shipping line in the world went into liquidation last week.  Now where is that recovery everyone’s been talking about?

See: http://www.telegraph.co.uk/finance/newsbysector/transport/9473476/World-shipping-crisis-threatens-German-dominance-as-Greeks-win-long-game.html

The Internet has allowed experts around the world to publish their opinions for all to read, hear, or view.  What a wealth on knowledge and information!  You can gain knowledge and skill by researching facts, tips, and how-to videos.  The problem is that we need two other facets to round out our life: wisdom and understanding.

I am amazed how people will listen to a wealthy person expounding on a topic where the wealthy person has little or no understanding.  If you became wealthy by building widgets, why should I place any credibility on your speech about global warming?  There is this belief among the masses that a wealthy person must have been “anointed” with understanding in all areas of life.  Wrong!  That person was good at one or two things and applied his skills along with Heaven’s willingness to allow his actions to bring forth wealth.

Over the years we find errors in the logic of experts.  Their formulas for success no longer work.  Their success was only achieved in a short window in time.  The young Bill Gates of Microsoft tried to sell his Windows operating system to IBM for about $70,000.  He needed the money.  IBM passed on the deal and Gates went on to be a billionaire.  He was fortunate they failed to see the potential.  How brilliant was that attempt to sell the one asset that would make you rich?

As for me, I prefer to get my understanding and wisdom from above.  What better source of wisdom and understanding than the One who created Heaven and earth:

Jeremiah 33:25-26 This is what the LORD says: ‘If I have not established my covenant with day and night and the fixed laws of heaven and earth, then I will reject the descendants of Jacob and David my servant and will not choose one of his sons to rule over the descendants of Abraham, Isaac and Jacob. For I will restore their fortunes and have compassion on them.’"

Our Heavenly Father confirmed HIS Covenant with the descendants of Jacob and David.  HIS Covenant with me is as sure as the fixed laws of heaven and earth, day and night.  I trust HIS Word, HIS precepts, HIS Law, and most of all, HIS Love.  Who can compare to the Creator?  Why do men go to and fro looking for the next big thing when you simply can go to your prayer closet and find what you ought to be focused on?  When we truly trust in the LORD with all of our being, we know that we have the wisdom and understanding to guide us through this life.  Does it get any better than that?